Question: During 2015, Grant Industries, Inc. was in the Process of constructing facility. The only expenditure was on January 1, 2015 for $4, 500, 00. The company had the following debt outstanding during the entire construction project:
a) 8 percent, five-year note to finance construction of the manufacturing facility, dated January 1, 2015, 13, 600, 000. (construction - specific loan)
b) 12 percent, 20-year bonds issued at par on January 1, 2010, $8, 000, 000
c) 8 percent, six-year note payable, dated March 1, 2013. $2, 000, 000.
Determine the amount of interest to be capitalized by Grant industries for 2015.