On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The company borrowed $1,500,000 at 8% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2021(Hint: use Weighted-average rate of these two other debts):

$5,000,000, 12% bonds

$3,000,000, 8% long-term note

Construction expenditures incurred during 2021 were as follows:

January 1	$	600,000
March 31		1,200,000
June 30		800,000
September 30		600,000
December 31		400,000

Required: Calculate the amount of interest capitalized for 2021 using the specific interest method. (Do not round the intermediate calculations. Round your percentage answers to 1 decimal place (i.e. 0.123 should be entered as 12.3%).)

Required: Calculate the amount of interest capitalized for 2021 using the specific interest method. (Do not round the intermediate calculations. Round your percentage answers to 1 decimal place (i.e. 0.123 should be entered as 12.3%).) Date Expenditure Weight Average January 1 X March 31 = June 30 = September 30 December 31 Accumulated expenditure 0 Amount Interest Rate Capitalized Interest Average accumulated expenditures O % = 0 % = 0 $ 0