On January $1,2024,$ the Highlands Company began construction on a new manufacturing facility for its own use. The building was

completed in $2025.$ The company borrowed $$1,600,000$ at $10\%$ on January $1$ to help finance the construction. In addition to the

construction loan, Highlands had the following debt outstanding throughout $2024$:

$$7,000,000,15\%$ bonds

$$3,000,000,10\%$ long$-$term note

Construction expenditures incurred during $2024$ were as follows:

Required:

Calculate the amount of interest capitalized for $2024$ using the specific interest method.

Note: Do not round the intermediate calculations. Round your percentage answers to $1$ decimal place $($i$.$e$.0\mathrm{.}123$ should be entered

as $12\mathrm{.}3\%.$

Answer is not complete.