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

Question

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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