Interest During Construction Alta Company is constructing a production complex that qualifies for interest capitalization. The following information is available: Capitalization period: January 1, 2016, to June 30, 2017 Expenditures on project: 2016: January 1 $ 540,000 May 1 465,000 October 1 600,000 2017: March 1 1,500,000 June 30 600,000 Amounts borrowed and outstanding: $1.5 million borrowed at 12%, specifically for the project $6 million borrowed on July 1, 2015, at 14% $14 million borrowed on January 1, 2011, at 8%

Required:

Compute the amount of interest costs capitalized each year.

Capitalized interest, 2016	$
Capitalized interest, 2017	$

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 2017. Round answer to 2 decimal places.

$