Rachel Corporation is constructing a new wind power-generating facility. Construction began on January 2 and was completed on Decemneber 31st of the current year. Rachel made the following expenditures during the year.

Date: Amount

January 2 $520,000

August 1 $440,000

October 1 $1,220,000

December 1 $1,020,000

To specifically finance the project ratio issue, $3,200,000 of 2- year, 10% notes payable on January 2. Interest is payable annually on December 31st each year. It earned interest income of $2,000 from investing the proceeds of the note during the year. What amount can Rachel capitalize during the year?

Let's begin by calculating the weighted average accumulated expenditures for the current year. (Do not round intermediary calculations. Only round the amounts to the nearest dollars.)

Date Weighted Average

(Current Year) Accumulated Expenditures

January 2

August 1

October 1

December 1

Total Accumulated Expediture

Now, determine the amount of interest to be capitalized by Rachel Corporation. (Round tot he enarest dollar)

The interest to be capitalized is .....?