Interest during construction

Jones 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-$468,000

May 1-$489,000

October 1-$648,000

2017

March 1-$1,452,000

June 30-$588,000

amounts borrowed and outstanding:

$1.4 million borrowed at 10%, specifically for the project

$7 million borrowed on July 1, 2105, at 12%

$19 million borrowed on January 1, 2011, at 6%

Required:

Note: round all final numeric answers to the nearest dollar

1. Computer amount of interest cost capitalized each year

Capitalized interest, 2016. ___________

Capitalize interest 2017. ______________

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 2017. __________________