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On Janary 1,2025, Bonita, Inc, signed a foxed-price contract to have Builder Associates construct a major plant facility at a cost of $4,449,000. It was

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On Janary 1,2025, Bonita, Inc, signed a foxed-price contract to have Builder Associates construct a major plant facility at a cost of $4,449,000. It was estimated that it would take 3 years to complete the project. Also on January 1, 2025, to finance the construction cost, Bonita borrowed $4,449,000 payable in 10 annual instal iments of $444,900, plus interest at the rate of 10%. During 2025, Bonita made deposits and progress payments totaling $1,668,375 under the contract; the weighted-awerage amount of accumulated expenditures was $889,800 for the vear. The excess borrowed funds were invested in short-term securities, from which Bonita realized investment income of $270.600. What amount should Bonita report as capitalized interest at December 31, 2025? Capitalized interest 5

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