On December 31, 2013, Shalla Company contracted Pfeifer Construction Co. to construct a building for $1,500,000. Shalla made the following payments to the construction company during 2014. Date Amount January 1, 2014 March 1, 2014 May 1, 2014 December 31, 2014 $210,000 $300,000 $540,000 $450,000 Pfeifer Construction completed the building, ready for occupancy, on December 31, 2014. Shalla had the following debt outstanding at December 31, 2014. Specific Construction Debt 1. 15%, 3-year note to finance purchase of land and construction of the building, dated December 31, 2013, with interest payable annually on December 31: $750,000 Other Debt 2. 10%, 5-year note payable, dated December 31, 2010, with interest payable annually on December 31: $550,000 3. 12%, 10-year bonds issued December 31, 2009, with interest payable annually on 3. 12%, 10-year bonds issued December 31, 2009, with interest payable annually on December 31: $600,000 1. Compute the weighted average accumulated expenditures for 2014 Date of Amount expenditure Fraction of year Wtd avg expenditure Jan. 1 $210,000 [ Select [ Select ] Mar. 1 $300,000 Select] [ Select May 1 $540,000 [ Select] [ Select [ Select ] Dec. 31 $450,000 [ Select] [ Select Totals $1,500,000 1. Compute actual interest for 2014 Debt Source Debt Amount Interest Rate Actual interest [ Select] Specific Debt $750,000 15% [Select] Note Payable $550,000 10% [ Select) Bond Payable $600,000 12% [ Select) Totals 1. Compute avoidable interest for 2014 Weighted Avg. interest for Other (General) Debt: Debt Source Debt Amount Interest Rate Interest Amount Note Payable $550,000 10% [ Select ] Bond Payable $600,000 12% [Select ] Totals $1,150,000 [ Select] Weighted Avg. Interest: (total interest amount/total debt amount). Get the total interest amount from table above. [ Select ] /$1,150,000 = (Select] Avoidable Interest: Weighted Debt [Avg. Interest Rate Source Expenditure Avoidable Interest Specific $750,000 Debt 15% [Select] General $70,000 Debt [Select] [ Select) Totals $820,000 [ Select How much interest would be capitalized? Lesser of Actual Interest or Avoidable Interest [ Select ]