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Christopher company borrowed $ 6 million at 1 1 % on January 1 , 2 0 1 6 , to build a new building. The
Christopher company borrowed $ million at on January to build a new building. The building is expected to take months to complete. Christopher invests the money from the project until it is needed for construction. He is currently earning The following is the expenditures as they relate to the construction of the building.
January $
April $
October $
December $
Required:
Compute the amount of interest expense Christopher would capitalize.
Compute the amount of interest revenue Christopher would recognize.
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