Brief Exercise 10-15 (Static) Interest capitalization [LO10-7] A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $500,000; March 31, $600,000; June 30, $400,000; October 30, $600,000. The company arranged a 7% loan on January 1 for $700,000. Assume the $700,000 loan is not specifically tied to the construction of the building The company's other borrowings, outstanding for the whole year, consisted of a $3 million loan and a $5 million note with interest rates of 8% and 6%, respectively. Assuming the company uses the weighted average method, calculate the amount of interest capitalized for the year. (Do not round intermediate calculations. Round your percentage answers to 2 decimal places (i.e. 0.1234 should be entered as 12.34%).) Date January 1, 2021 ences March 31, 2021 Expenditure Weight Average $ 500,000 x 12/12 $ 500,000 600,000 9/12 450,000 June 30, 2021 October 30, 2021 400,000 x 6/12 200,000 600,000 x 2/12 100,000 Accumulated expenditure $ 2,100,000 $ 1,250,000 Average accumulated expenditures Amount $1,250,000 Interest Rate Capitalized Interest 700.000 700 % 49,000 550,000 675 % 37.125 S 66,125