Agasse Industries began construction of a new facility and took out a $1,500,000, 8% construction loan on April 1, 2018. Agasse made payments to the general contractor of $400,000 on April 1, $900,000 on August 31, and $500,000 on December 31.
Required:
Compute the amount of interest that Agasse would capitalize in 2018.

Question

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The Answer of Agasse Industries began construction of a new facility and took out a $1,500,000, 8% construction loan on April 1, 2018. Agasse made payments to the general contractor of $400,000 on April 1, $900,000 on August 31, and $500,000 on December 31.
Required:
Compute the amount of interest that Agasse would capitalize in 2018.

Agasse Industries Began Construction of a New Facility and Took