The 2014 annual report of Stainless Steel disclosed the following information relating to the company's construction projects,debt,and interest cost (in thousands of dollars):
Construction in progress (relating to a component of property,plant,and equipment)increased from $63,889 to $80,876 in 2014.
Interest capitalized in 2014 of $5,674 was disclosed in the footnotes of the company's financial statements.
Interest-bearing debt outstanding at the end of 2013: $190,000 of 9.5 percent notes,$135,000 of 11.125 percent notes,and $32,350 relating to a line of credit with an interest rate of 9%.
Required:
Based on the information provided in the annual report,estimate the amount of interest to be capitalized in 2014.Give reasons why your estimate differs from the amount reported by the company.Assume that the construction payments were made uniformly during the year.

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The Answer of The 2014 annual report of Stainless Steel disclosed the following information relating to the company's construction projects,debt,and interest cost (in thousands of dollars):
Construction in progress (relating to a component of property,plant,and equipment)increased from $63,889 to $80,876 in 2014.
Interest capitalized in 2014 of $5,674 was disclosed in the footnotes of the company's financial statements.
Interest-bearing debt outstanding at the end of 2013: $190,000 of 9.5 percent notes,$135,000 of 11.125 percent notes,and $32,350 relating to a line of credit with an interest rate of 9%.
Required:
Based on the information provided in the annual report,estimate the amount of interest to be capitalized in 2014.Give reasons why your estimate differs from the amount reported by the company.Assume that the construction payments were made uniformly during the year.

The 2014 Annual Report of Stainless Steel Disclosed the Following