Thornton Industries began construction of a warehouse on July 1, 2016. The project was completed on March 31, 2017. No new loans were required to fund construction. Thornton does have the following two interest-bearing liabilities that were outstanding throughout the construction period:

$2,000,000, 8% note

$8,000,000, 4% bonds

Construction expenditures incurred were as follows:

July 1, 2016 ........................$400,000

September 30, 2016 ............... 600,000

November 30, 2016 ............... 600,000

January 30, 2017 ................... 540,000

The company's fiscal year-end is December 31.

Required:

Calculate the amount of interest capitalized for 2016 and 2017.