On January 1, 2011, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2012. The only interest-bearing debt the company had outstanding during 2011 was long-term bonds with a book value of $10,000,000 and an effective interest rate of 8%. Construction expenditures incurred during 2011 were as follows:
January 1 ....... $500,000
March 1 ........ 600,000
July 31 ......... 480,000
September 30 ..... 600,000
December 31 ...... 300,000
Required:
Calculate the amount of interest capitalized for 2011.