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On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2019. Expenditures

  1. On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2019. Expenditures on the project were as follows:

    January 1, 2018

    $

    300,000

    September 1, 2018

    $

    450,000

    December 31, 2018

    $

    450,000

    March 31, 2019

    $

    450,000

    Dreamworld had the following debt obligations outstanding during both years:

    Construction loan, 10% $500,000

    Long-term note, 12% $2,500,000

    Required: What would Dreamworld's capitalized interest be in 2019 (assuming interest from 2018 does not compound in 2019)?

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