On January 1, 2020, Hakie, Inc. signed a $1,500,000 contract for the construction of a warehouse. When the contract was signed, it was estimated that the warehouse would be completed by December 31, 2020. On March 1, 2020, Hakie borrowed $1,500,000 to finance the construction cost. This amount is payable on March 1, 2021, plus interest at the rate of 8 %. During 2020, Hakie made progress payments totaling $1,000,000 on the contract; and the weighted-average amount of accumulated expenditures was $700,000 for the year. The excess-borrowed funds were invested in short-term securities, from which Hakie realized investment revenue of $15,000. The warehouse was completed on December 1, 2020, at which time Hakie made the final payment to the contractor. Hakie estimates the warehouse will have a 25-year useful life, with a salvage value of $50,000. What amount of capitalized interest should Hakie include in the cost of the warehouse?

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