question archive On January 1, 2021, the Marjlee Company began construction of an office building to be used as its corporate headquarters
On January 1, 2021, the Marjlee Company began construction of an office building to be used as its corporate headquarters
Subject:AccountingPrice: Bought3
On January 1, 2021, the Marjlee Company began construction of an office building to be used as its corporate headquarters. The building was completed early in 2022. Construction expenditures for 2021, which were incurred evenly throughout the year, totaled $6,000,000. Marjlee had the following debt obligations which were outstanding during all of 2021:
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 2021 for the building using the specific interest method.
Interest capitalized_____________________________
