On January 1, 2018, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2019. The only interest-bearing debt the company had outstanding during 2018 was long-term bonds with a book value of $10,000,000 and an effective interest rate of 8%. Construction expenditures incurred during 2018 were as follows:
January 1 ............................... $500,000
March 1 ................................. 600,000
July 31 ................................... 480,000
September 30 ........................... 600,000
December 31 ........................... 300,000
Required:
Calculate the amount of interest capitalized for 2018.