q6

During 2015, USF Company self-constructed some specialized equipment. They incur the following expenses related to construction of the asset through 2015: Date Amount 2/28/2015 $1,200,000 4/30/2015 $2,100,000 6/30/2015 $1,000,000 8/31/2015 $3,000,000 12/31/2015 $2,000,000 The company had the following debt outstanding at December 31, 2015: 1.) $3,000,000, 10%, 5-year note specifically borrowed to finance construction of equipment dated January 1, 2015, with interest payable annually on December 31 2.) $5,000,000, 12%, ten-year bonds issued at par on December 31, 2009, with interest payable annually on December 31 3.) $2,500,000, 9%, 3-year note payable, dated January 1, 2014, with interest payable annually on December 31 How much of the total actual interest incurred in 2014 will USF expense