Question

Spark Inc. has $538,600 of the year’s weighted-average of expenditures for construction on a factory that...

Spark Inc. has $538,600 of the year’s weighted-average of expenditures for construction on a factory that qualifies for interest capitalization. Assume the company has the following debt outstanding for the entire year: $420,000 of 6% specific construction loans; $270,000 of 5% general notes payable; and $160,000 of 8% general bonds payable. How much interest should be capitalized for the year?

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