Question 25 (1 point) Michelson & Sons started construct a new building on March 1, 2024, and the new building was completed on October 30, 2024. Construction expenditures were as follows: March 1 $900,000 June 30 1,200,000 July 30 1,200,000 September 1 600,000 Michelson did not borrow specifically for the construction project, but did have the following debt outstanding throughout 2024: $6,000,000, 8% long-term note payable $2,000,000, 5% long-term note payable In December, the company purchased equipment and office furniture and fixtures for a lump-sum price of $900,000. The fair values of the equipment and the furniture and fixtures were $600,000 and $400,000, respectively. What is the amount of interest expense that is added to the cost of the new building? $129,250

Question 25 (1 point) Michelson \& Sons started construct a new building on March 1, 2024, and the new building was completed on October 30,2024 . Construction expenditures were as follows: Michelson did not borrow specifically for the construction project, but did have the following debt outstanding throughout 2024: $6,000,000,8% long-term note payable $2,000,000,5% long-term note payable In December, the company purchased equipment and office furniture and fixtures for a lump-sum price of $900,000. The fair values of the equipment and the furniture and fixtures were $600,000 and $400,000, respectively. What is the amount of interest expense that is added to the cost of the new building? $129,250