Reference no: EM132594642

Question - On March 1, 2019, LAS Company purchased land for an office site. LAS Company began construction on the office building on March 1. The following expenditures were incurred for construction:

Date Expenditures

March 1, 2019 € 600,000

June 1, 2019 504,000

Aug 1, 2019 900,000

Oct 1, 2019 1,440,000

The payment of March includes the land cost of €200,000. The office was completed on December 31.

LAS borrowed €729,000 on March 1, 2019, on a 9%, 3-year note payable for construction purposes.

Other general loans include €3000,000, 12%, 6-year note payable dated January 1, 2019, and

€1,500,000, 9%, 5-year note payable dated January 1, 2019.

LAS earned interest revenues of €20,000 for specific borrowing.

Required - Compute the interest expense for 2019?