Question: A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as

A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $590,000; March 31, $690,000; June 30, $490,000; October 30, $870,000. To help finance construction, the company arranged a 8% construction loan on January 1 for $880,000. The company's other borrowings, outstanding for the whole year, consisted of a $4 million loan and a $6 million note with interest rates of 12% and 7%, respectively.

Assuming the company uses thespecific interest method,Calculate the amount of interest capitalized for the year.(Do not round intermediate calculations.)

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