On December 31, 2019, Metlock Inc. borrowed $3,300,000 at 13% payable annually to finance the construction of a new building. In 2020, the company made the following expenditures related to this building: March 1, $439,200, June 1, $732,000; July 1, $1,830,000; December 1, $1,830,000. The building was completed in February 2021. Additional information is provided as follows.

 

Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building.

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1. Other debt outstanding 10-year, 14% bond, December 31, 2013, interest payable annually $4,880,000 6-year, 11% note, dated December 31, 2017, interest payable annually $1.952,000 2. March 1, 2020, expenditure inciuded land costs of $183,000 3. Interest revenue earned in 2020 $59,780 1. Other debt outstanding 10-year, 14% bond, December 31, 2013, interest payable annually $4,880,000 6-year, 11% note, dated December 31, 2017, interest payable annually $1.952,000 2. March 1, 2020, expenditure inciuded land costs of $183,000 3. Interest revenue earned in 2020 $59,780