3. Jensen Corp. purchased a container load of antiques for resale at an invoice cost of $950,000. The goods were paid for when they were shipped in early January. The payment was financed through general borrowing. The container arrived in Canada at the end of June, and then at Jensens location, by rail, at the beginning of August. Jensen had to refurbish some of them which took the months of August and September. The refurbishing costs incurred were $100,000, which were also financed. As of October 1^st, the goods were available for sale. Transportation costs of $98,000 were paid in cash in October. Jensen has recorded $169,000 of total interest expense from $2,600,000 of general borrowing over the year.

Required:

Compute the amount of interest that can be capitalized by Jensen related to the above. Show all your work and comment on any payments which are not capitalizable.