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On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on
On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2019. Expenditures on the project were as follows:
January 1, 2018 March 1. 2018 June 30, 2018 October 1, 2018 January 31, 2019 April 30, 2019 August 31, 2019 $1,710,000 1.320.000 1,520,000 1,320,000 378,000 711,000 1,008,000 On January 1, 2018, the company obtained a $4,200,000 construction loan with a 16% interest rate. The loan was outstanding all of 2018 and 2019. The company's other interest-bearing debt included two long-term notes of $4,000,000 and $6,000,000 with interest rates of 12% and 14%, respectively. Both notes were outstanding during all of 2018 and 2019. Interest is paid annually on all debt. The company's fiscal year-end is December 31. Calculate the amount of interest that Mason should capitalize in 2019Step by Step Solution
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