Exercise 10-24 Interest capitalization (L010-7] On January 1, 2018, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2019. The company borrowed $2,300,000 at 8% on January 1 to help finance the constraction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2018: $9,000,000, 131 bonds $6.000.000, 88 long-term note Construction expenditures incurred during 2018 were as follows: $ January 1 March 31 June 30 September 30 December 31 940,000 1,540,000 1,200,000 940,000 740,000 Required: Calculate the amount of Interest capitalized for 2018 using the specific interest method. (Do not round the intermediate calculations. Round your percentage answers to 1 decimal place (.e. 0.123 should be entered as 12.3%).) Expenditure Average Date January 1 March 31 June 30 September 30 December 31 Accumulated expenditure Average Interest Rate Capitalized Interest Average accumulated expendtures