On December 31, 2024, Bonita Inc. borrowed $3,540,000 at 13% payable annually to finance the construction of a new building. In 2025, the company made the following expenditures related to this building: March 1, $424,800; June 1, $708,000; July 1, $1,770,000; December 1, $1,770,000. The building was completed in February 2026. Additional information is provided as follows. 1. 2. 3. (a) Other debt outstanding: 10-year, 14% bond, December 31, 2018, interest payable annually 6-year, 11% note, dated December 31, 2022, interest payable annually March 1, 2025, expenditure included land costs of $177,000. Interest revenue of $57,820 earned in 2025. Determine the amount of interest to be capitalized in 2025 in relation to the construction of the building. The amount of interest $4,720,000 1,888,000 eTextbook and Media

On December 31,2024 , Bonita Inc. borrowed $3,540,000 at 13% payable annually to finance the construction of a new building. In 2025, the company made the following expenditures related to this building: March 1, $424,800; June 1, $708,000; July 1 , $1,770,000; December 1,$1,770,000. The building was completed in February 2026. Additional information is provided as follows. (a) Determine the amount of interest to be capitalized in 2025 in relation to the construction of the building: The amount of interest