Answer:
total capitalized interests = $572,727
Explanation:
weighted expenditures:
$4,320,000 x 10/12 = $3,600,000
$2,880,000 x 7/12 = $1,680,000
$7,200,000 x 0/12 = $0
total = $5,280,000
$2,400,000 x 10/12 x 10% = $200,000
Capitalized interests = $200,000 (for $2,000,000)
weighted interests
$4,800,000 x 12/12 x 12% = $576,000
$8,400,000 x 12/12 x 11% = $924,000
weighted interest rate = $1,500,000 / $13,200,000 = 11.36%
Capitalized interests = ($5,280,000 - $2,000,000) x 11.36% = $372,727
total capitalized interests = $572,727
