3) On January 1, 2021, Silver Inc. began construction of a new warehouse for its own use. The warehouse was completed at the end of 2021. Expenditures on the project in 2021 were as follows: January 1, 2021 $200,000 July 1, 2021 800,000 December 31, 2021 100.000 Silver borrowed $500,000 on a construction loan at 5% interest rate in January 1, 2021. The loan was outstanding throughout the construction period. During 2021, the company had $400,000 in 4% bonds and $600,000 in 8% notes outstanding. Assuming applying for the specific interest method, the warehouse should be capitalized at