Alta Company is constructing a production complex that qualifies for interest capitalization. The following information is available:

Capitalization period: January 1, 2019, to June 30, 2020

Expenditures on project:

2019: January 1 $ 504,000

May 1 345,000

October 1 648,000

2020: March 1 1,392,000

June 30 600,000

Amounts borrowed and outstanding:

$1.3 million borrowed at 12%, specifically for the project

$5 million borrowed on July 1, 2018, at 14%

$16 million borrowed on January 1, 2017, at 8%

Required: Note: Round all final numeric answers to two decimal places. Compute the amount of interest costs capitalized each year.

Capitalized interest, 2019 $ 107,520

Capitalized interest, 2020 $ 200,480

Compute the amount of interest costs capitalized each year.

Capitalized interest, 2019	$
Capitalized interest, 2020	$

2. If it is assumed that the production complex has an estimated life of 20 years and a residual value of $0, compute the straight-line depreciation in 2020.