On March 1, 2010, Packard Company purchased land for an officesite by paying $600,000 cash. Packard began construction on theoffice building one year later on March 1, 2011. The followingexpenditures were incurred for construction on each of therespective dates: Date Amount March 1, 2011 $680,000 April 1, 2011$352,000 May 1, 2011 $450,000 June 1, 2011 $520,000 The office wascompleted and ready for occupancy on July 1. To help pay forconstruction, $400,000 of common stock was issued on March 1, 2011.The only debts outstanding during 2011 was a $150,000, 11%, 6-yearnote payable dated January 1, 2011 and a $300,000, 13%, 10-yearnote payable dated July 1, 2009. Neither of these notes were paidoff prior to their respective maturity dates. The amount ofinterest cost to be capitalized by Packard during 2011 is
