Calculating interest capitalized during construction. Bulls Eye Stores constructed new stores during the current year. The average balance in the Construction-in-Process account excluding the current year’s capitalized interest costs was $3,400,000. Bulls Eye Stores engaged in borrowing directly related to these stores in the amount of $2,000,000, which carries an interest rate of 6%. Bulls Eye Stores has other borrowing outstanding totaling $8,000,000 at an average interest rate of 7%. Compute the amount of interest capitalized in the Construction-in-Process account during the current year.