Alta Company is constructing a production complex that qualifies for interest capitalization. The following information is availabie: - Capitalization periodi January 1,2019 , to June 30,2020 - Expenditures on project: 2019: - Amounts borrowed and outstanding: $1.7 million borrowed at 12%, specifically for the project. $5 mimion borrowed on July 1,2018 , ot 14% $20 million borrowed on January 1,2017 , at 8% Required: Note; Round all final numeric answers to two decimal places. 1. Compute the amount of interest costs capitalized each yeat. Capitalized interest, 2019 Copitalized interest, 2020 2. If it is assumad that the production complex has an estimated life of 25 years and a residual value of 30 , compute the straight-ine depreciation in 2020. 3. Since GAAQ requires accrual accounting, if a company capitalizes interest during the construction period it will report income than if it had not capitalized interest. In future periods, the same company will report) income than if it had not capitalized interest