Mickey Corporation incurred the following expenditures during 2015 to build—starting on February 1—equipment to be used in its operations: February 1, $240,000; March 1, $480,000; June 1, $600,000. The project was completed on August 1. Mickey acquired a special 3-year construction loan for $200,000 on August 1, 2015 at 10% annual interest to be paid each July 31. Additionally, Mickey had $300,000 of 5-year, 1% notes payable outstanding since 2008. Additionally, Mickey issued 2,000 shares of common stock during the year for $40,000. How much cost of capital should Mickey capitalize into the equipment?
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