Interest During Construction

Alta Company is constructing a production complex that qualifies for interest capitalization. The following information is available:

• Capitalization period: January 1, 2019, to June 30, 2020
• Expenditures on project:

2019:

January 1

May 1

October 1

$ 528,000

549,000

624,000

2020:

March 1

June 30

1,548,000

470.000

Amounts borrowed and outstanding: $1.5 million borrowed at 12%, specifically for the project $5 million borrowed on July 1, 2018, at 14% $17 million borrowed on January 1, 2017, at 8%

Required:

Note: Round all final numeric answers to two decimal places.