Mariah Corporation is constructing a new wind power- generating facility. Construction began on January 2 and was completed on December 31 of the current year. Mariah made the following expenditures during the year:
Date Amount
January 2 ………………………… $ 500,000
August 1 ………………………… 400,000
October 1………………………… 1,200,000
December………………………… 1 100,000
To specifically finance the project, Mariah issued $ 2,200,000 of 2- year, 8% notes payable on January 2. Interest is payable annually on December 31 each year. It earned interest income of $ 3,000 from investing the proceeds of the note during the year. What amount of interest can Mariah capitalize during the year?