On January 1, 2018, the Marjlee Company began construction of anoffice building to be used as its corporate headquarters. Thebuilding was completed early in 2019. Construction expenditures for2018, which were incurred evenly throughout the year, totaled$9,900,000. Marjlee had the following debt obligations which wereoutstanding during all of 2018:
|
| Construction loan, 10% | $ | 2,475,000 | |
| Long-term note, 9% | | 3,300,000 | |
| Long-term note, 6% | | 6,600,000 | |
|
Required:
Calculate the amount of interest capitalized in 2018 for thebuilding using the specific interest method.
The answer i got was $305,250 (incorrect)
