On December 31, 2016, Marin Inc. borrowed $3,720,000 at 13% payable annually to finance the construction of a new building. In 2017, the company made the following expenditures related to this building: March 1, $446,400; June 1, $744,000; July 1, $1,860,000; December 1, $1,860,000. The building was completed in February 2018. Additional information is provided as follows. 1. Other debt outstanding 10-year, 14% bond, December 31, 2010, interest payable annually $4,960,000 6-year, 11% note, dated December 31, 2014, interest payable annually $1,984,000 2. March 1, 2017, expenditure included land costs of $186,000 3. Interest revenue earned in 2017 $60,760 Determine the amount of interest to be capitalized in 2017 in relation to the construction of the building. The amount of interest
On December 31, 2016, Marin Inc. borrowed $3,720,000 at 13% payable annually to finance the construction of a new building. In 2017, the company made the following expenditures related to this building: March 1, $446,400; June 1, $744,000; July 1, $1,860,000; December 1, $1,860,000. The building was completed in February 2018. Additional information is provided as follows.
1. Other debt outstanding
10-year, 14% bond, December 31, 2010, interest payable annually $4,960,000
6-year, 11% note, dated December 31, 2014, interest payable annually $1,984,000
2. March 1, 2017, expenditure included land costs of $186,000
3. Interest revenue earned in 2017 $60,760
Determine the amount of interest to be capitalized in 2017 in relation to the construction of the building.
The amount of interest
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