Situation III Sheffield, Inc. has a fiscal year ending April 30. On May 1, 2017, Sheffield borrowed $9,658,000 at 11% to finance construction of its own building. Repayments of the loan are to commence the month following completion of the building. During the year ended April 30, 2018, expenditures for the partially completed structure totaled $6,760,600. These expenditures were incurred evenly throughout the year. Interest earned on the unexpended portion of the loan amounted to $627,770 for the year. How much should be shown as capitalized interest on Sheffields financial statements at April 30, 2018?

Capitalized interest on Sheffields financial statements

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