1)Determine how much Michelson will capitalize in 2021?

2) Determine interest expense Michelson will report in its 2021 income statement?

Michelson & Sons construction of a new building began on March 1 and was completed on October 30. Construction expenditures were as follows: March 30 $ 800.000 June 30 1,200,000 July 30 1,200,000 September 1 600,000 Michelson did not borrow specifically for the construction project, but did have the following debt outstanding throughout 2021: $6,000,000, 8% long-term note payable $2,000,000, 5% long-term note payable