Exercise 10-24 Interest capitalization (LO10-7] 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 $1,800,000 at 7% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2018: $9,000,000, 12% bonds $5,000,000, 7% long term note Construction expenditures incurred during 2018 were as follows: 1,380,000 550.000 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 le. 0.123 should be entered as 12.3%) January 1 March 31 June 30 September 30 December 31 Accumulated expenditure Average Interest Rate Capitalized Interest Average accumulated expenditures 5 search