Hawkins Corporation began construction of a motel on March 31, 2021. The project was completed...
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Hawkins Corporation began construction of a motel on March 31, 2021. The project was completed on April 30, 2022. No new loans were required to fund construction. Hawkins does have the following two interest-bearing liabilities that were outstanding throughout the construction period: $4,700,000, 6% note $21,180,000, 10% bonds Construction expenditures incurred were as follows:
March 31, 2021
$
4,630,000
June 30, 2021
6,630,000
November 30, 2021
1,926,000
February 28, 2022
3,630,000
The companys fiscal year-end is December 31. Required: Calculate the amount of interest capitalized for 2021 and 2022. (Round weighted average interest rate to 2 decimal places and final answers to the nearest whole dollar.)
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