Exercise 10-24 (Algo) Interest capitalization (L010-7] On January 1, 2021 the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The company borrowed $1,650,000 at 10% on January 1to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2021 $6,000,000, 154 bonds $4,000,000, 104 long-term note Construction expenditures incurred during 2021 were as follows: January 1$ 720,000 March 31 1,320,000 June 30 944,000 September 38 720,000 December 31 520,000 Required: Calculate the amount of interest capitalized for 2021 using the specific interest method (Do not found the Intermediate calculations. Round your percentage answers to 1 decimal place the. 0.123 should be entered as 12.3%).) Expenditure Weight Average = Date January 1 March 31 June 30 September 30 December 31 Accumulated expenditure X X X X WWW Amount Interest Rate Capitalized Interest Average accumulated expenditures x % % X