Business, 21.01.2020 19:31 nommies005

On december 31, 2019, main inc. borrowed $3,000,000 at 12% payable annually to finance the construction of a new building. in 2020, the company made the following expenditures related to this building: march 1, $360,000; june 1, $600,000; july 1, $1,500,000; december 1, $1,500,000. the building was completed in february 2021. additional information is provided as follows.
1. other debt outstanding
10-year, 13% bond, december 31, 2013, interest payable annually $4,000,000
6-year, 10% note, dated december 31, 2017, interest payable annually $1,600,000
2. march 1, 2020, expenditure included land costs of $150,000
3. interest revenue earned in 2020 $49,000

determine the amount of interest to be capitalized in 2020 in relation to the construction of the building.
the amount of interest $

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On december 31, 2019, main inc. borrowed $3,000,000 at 12% payable annually to finance the construct...

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