36. Thurstone Company, a U.S.-based company, borrows 1,500,000 British pounds () on January 1Year 1, at an interest rate of 4 percent to finance the construction of a new office building for its employees in England. Construction is expected to take six months and cost 1,500,000. Thurstone temporarily invests the borrowed British pounds until cash is needed to pay costs. Interest earned in the first quarter of Year is 5,000. During the first quarter of Year 1, expenditures of 500,000 are incurred; the weighted-average expenditures are 300,000. Thurstone will repay the borrowing plus interest on June 30, Year 1, by converting U.S. dollars into British pounds. The U.S. dollar/British pound exchange rate was $2.00 on January 1, Year 1, and $2.10 on March 31, Year 1. The change in exchange rate is the result of the difference in interest rates in the United States and Great Britain. Required: Determine the amount of borrowing costs (in U.S. dollars) that Thurstone should include in the cost of the new office building at March 31, Year 1.