The company had the following loans outstanding for the entire year:

The company began the self-construction of a building on January 1. The following expenditures were made during the year:
January 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000
May 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000
November 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $600,000
Construction was completed on December 31. Compute
(1) The amount of interest capitalized during the year and
(2) The recorded cost of the building at the end of theyear.

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Amount $ 100,000 2,000,000 Interest Rate 10% 12 Specific construction loan General loan