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Interest Capitalization Calculation : Calculate the amount of interest to be capitalized for a construction project that spans 2 years. The company has borrowed $500,000

  1. Interest Capitalization Calculation: Calculate the amount of interest to be capitalized for a construction project that spans 2 years. The company has borrowed $500,000 at an annual interest rate of 6%. During the first year, $300,000 of the borrowed funds were used for construction. How much interest should be capitalized in the first year?

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