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

Calculation of average interest on non specific loan rate of interestloaninterestlong term note,…

Answered: Required: Calculate the amount of…

Required: Calculate the amount of interest capitalized in 2016 for the building using the specific interest method. Interest capitalized

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

he answer is not $705000 and is also not $465,000 which were some of the other expert answers through Bartelby for this same question.( Iplugged both of those in and they were wrong) Please help me answer this correctly.

On January 1, 2016, the Marjlee 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. Marjlee 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 capitalized

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