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in-class Problem #2: Interest Capitalization Assume a company borrowed $200,000 at 12% interest from State Bank on Jan. 1, 2017, for specific purposes of constructing special- purpose equipment to be used in its operations. Construction on the equipment began on Jan. 1, 2017, and the following expenditures were made prior to the project's completion on Dec. 31, 2017 Other general debt existing on Jan. 1, 2017: Actual Expenditures during 2017: January 1 April 30 November1 December 31 $100,000 150,000 300,000 100,000 $650,000 | $500,000, 14%, 10-year bonds payable | -3 $300,000, 10%, 5-year note payable Total expenditures