On January 1, 2024, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2025. The company borrowed $1,700,000 at 9% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2024: $6,000,000, 14% bonds $4,000,000, 9% long-term note Construction expenditures incurred during 2024 were as follows: January 1 March 31 June 30 September 30 December 31 Required: Calculate the amount of interest capitalized for 2024 using the specific interest method. Note: 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 January 1 March 31 June 30 September 30 December 31 Accumulated expenditure $ 620,000 1,220,000 824,000 620,000 420,000 Average accumulated expenditures Expenditure Amount X X X X X X X Weight Interest Rate % % = = 1 E = Average Capitalized Interest

On January 1, 2024, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2025. The company borrowed $1,700,000 at 9% on January 1 to help finance the construction. In addition to the construction loan, Hightands had the following debt outstanding throughout 2.024 $6,000,000,14% bonds $4,000,000,9% long-term note Construction expenditures incurred during 2024 were as follows: Required: Calculate the amount of interest capitalized for 2024 using the specific interest method Note: Do not round the intermediate calculations. Round your percentoge answers to 1 decimal place fi.e. 0.123 should be entered os 12.3% )