Interest During Construction

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	$ 528,000
	May 1	549,000
	October 1	624,000
2020:
	March 1	1,548,000
	June 30	480,000

Amounts borrowed and outstanding: $1.5 million borrowed at 12%, specifically for the project $5 million borrowed on July 1, 2018, at 14% $17 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	$ fill in the blank 1
Capitalized interest, 2020	$ fill in the blank 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.