Computing and Recording Interest Capitalization

Bullock Company is constructing a building for its own use and has been capitalizing interest based on average expenditures on a quarterly basis since the project began last year. The following expenditures are made during the first quarter: January $1,$$$6,720,000$; February $1,$ $$6,120,000$; and March $31,$$$8,760,000.$ Bullock had the following debts outstanding during this quarter.

$\backslash$table$[[$Debt$,$Amount$],[$Note payable, $10\%,$ incurred specifically to finance construction,$$3,840,000$