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The answer is not $705000 and is also not $465,000 which were some of the other expert answers through chegg for this same question.( Iplugged
The answer is not $705000 and is also not $465,000 which were some of the other expert answers through chegg for this same question.( Iplugged both of those in and they were wrong) Please help me answer this correctly.
On January 1, 2016, the Marilee Company began construction of an office building to be used as its corporate headquarters. The building was completed early in 2017. Construction expenditures for 2016 which were incurred evenly throughout the year, totaled $6,000,000. Marilee had the following debt obligations which were outstanding during all of 2016 Construction loan, 10% $1,500,000 Long-term note, 9% 2,000,000 Long-term note, 6% 4,000,000 Required: Calculate the amount of interest capitalized in 2016 for the building using the specific interest method. Interest capitalizedStep by Step Solution
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