Pesky Corporation began construction on a new manufacturing plant for its own use on January ( 1,20 imes 3 ). The plant was completed in ( 20 imes 4 ). The only interest-bearing debt the company had outstanding during ( 20 imes 3 ) was long-term bonds with a book value of ( $ 11,600,000 ) and an effective interest rate of ( 11 % ). Construction expenditures incurred during ( 20 imes 3 ) were as follows: Required: Calculate the amount of interest Pesky should capitalize for ( 20 imes 3 ).

Pesky Corporation began construction on a new manufacturing plant for its own use on January 1, 20x3. The plant was completed in 20x4. The only interest-bearing debt the company had outstanding during 203 was long-term bonds with a book value of $11,600,000 and an effective interest rate of 11%. Construction expenditures incurred during 203 were as follows: Required: Calculate the amount of interest Pesky should capitalize for 203