EN$-$IN

On December

$3$

$1$

$,$

$2$

$0$

$2$

$3$

$,$

$$Cheyenne Inc., a public company, borrowed $

$3$

$$million at

$1$

$1$

$\%$

$$payable annually to finance the construction of

a new building. In

$2$

$0$

$2$

$4$

$,$

$$the company made the following expenditures related to this building structure: March

$1$

$,$

$

$5$

$1$

$9$

$,$

$0$

$0$

$0$

; June

$1$

$,$

$

$6$

$3$

$0$

$,$

$0$

$0$

$0$

; July

$1$

$,$

$

$1$

$.$

$5$

$$million

$($

of which $

$4$

$1$

$2$

$,$

$0$

$0$

$0$

$$was for the roof

$)$

; December

$1$

$,$

$

$1$

$.$

$5$

$$million

$($

of which $

$7$

$2$

$8$

$,$

$0$

$0$

$0$

$$was for the building

HVAC

$)$

$.$

Additional information follows:

Other debt outstanding:

$

$5$

$-$

million,

$1$

$0$

$-$

year,

$1$

$2$

$\%$

$$bond$,$ dated December

$3$

$1$

$,$

$2$

$0$

$1$

$6$

$,$

$$with interest payable annually

$

$1$

$.$

$5$

$-$

million, six

$-$

year,

$1$

$0$

$\%$

$$note$,$ dated December

$3$

$1$

$,$

$2$

$0$

$2$

$0$

$,$

$$with interest payable annually

The March

$1$

$,$

$2$

$0$

$2$

$4$

$$expenditure included land costs of $

$1$

$4$

$7$

$,$

$0$

$0$

$0$

$.$

Interest revenue earned in

$2$

$0$

$2$

$4$

$$on the unused idle construction loan amounted to $

$5$

$2$

$,$

$4$

$0$

$0$

$.$

Determine the interest amount that could be capitalized in

$2$

$0$

$2$

$4$

$$in relation to the building construction.

$($

Do not round

intermediate calculations. Round capitalization rate to

$2$

$$decimal places, e

$.$

g

$.$

$1$

$5$

$.$

$2$

$5$

$\%$

$$and final answer to

$0$

$$decimal places, e

$.$

g

$.$

$5$

$,$

$2$

$7$

$5$

$.$

$)$

Interest amount to be capitalized $