On January 2, 20x6, Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 20x7. The company borrowed $1,500,000 at 8% on January 2 to help finance the construction. In addition to the construction loan, Highlands had addition to the construction loan, Highlands had the following Debt outstanding throughout 20x6. $5,000,000 $3,000,000 12% bonds 8% long-term note Construction expenditures during 20x6 January 2 March 31 June 30 September 30 December 31 $400,000 1,200,000 600,000 800,000 500,000 Calculate the amount of interest to be capitalized in 20x6. SHOW YOUR CALCULATIONS

On lanuary 2.20x6, Highlands Comparry began construction on a new manutacturing facility for its own use. The building was completed in 20x7. The company Higlands had the following Debt outstanding throughout 206. Construction expenditures during 206 Caloulate the amount of interest to be capitalized in 20.6. SHOW YOUR CALCULATIONS