Question 1 of 2

Question I of 2 View Policies Current Attempt in Progress -/5 Pharoah Furniture started construction of acombination office and warehouse building for its own use at an estimated cost of ,4, 160,000 on January 1, 2022. Pharoah expected to complete the building by December 31.2022. Pharoah has the following debt obligations outstanding during the construction period. Fonstruction loan-12% interest, payable semiannually, issued December 31, 2021 Short-term loan-10% interest, payable monthly. and principal payable at maturity on May 30, 2023 Long-term loan-11% interest. payable on January 1 Of each year. Principal payable On January 1.2026 (a) 1.60000 840000 Assume that Pharoah completed the office and warehouse buildingon December 31.2022. as planned at a total cost of 4,368,000. The following expenditures were made during the period forthis project: January 1, 840,000; April 1.1.240.000, July and October 1, 560,000. Excess funds from the construction loans were invested during the period and earned 17,600 of investment income. Compute the amount of borrowing costs to be capitalized for this project. (Use interest rounded to 2 decirnaJ places, 4.7.58% for computational rxjrposesarxi firwlanswersto O cimal ples, e-8.5.275.) Borrowing costs eTextbook and Media Attempts: O of 2 used Submit Answer Save for Later 30C