Exercise 10-23 Interest capitalization [LO10-7] On January 1, 2018, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2019. The only interest-bearing debt the company had outstanding during 2018 was long-term bonds with a book value of $10,900,000 and an effective interest rate of 7%. Construction expenditures incurred during 2018 were as follows January 1 March 1 July 31 September 30 December 31 $590,000 654, 000 534,000 690,000 390,000 Required Calculate the amount of interest capitalized for 2018 Date Expenditure Weight Average January 1 March 1 July 31 September 30 December 31 Accumulated expenditure Capitalized Interest Average Interest Rate Average accumulated expenditures