n January of 20X1, the Falwell Company began construction of its own manufacturing facility. During 20X1, $6,000,000 in costs were incurred evenly throughout the year. Falwell took out a $2,500,000, 10% construction loan at the beginning of the year. The company had no other interest-bearing debt. What amount of interest should Falwell capitalize in 20X1?

Multiple Choice

• $0

• $600,000

• $300,000

• $250,000