5.

On December 31,2024 , Ayayai Inc. borrowed $1,080,000 at 13% payable annually to finance the construction of a new building. In 2025 , the company made the following expenditures related to this building: June 1, $432,000; July 1, \$648,000; September 1 , $1,296,000; December 1, $648,000. The building was completed in April 2026. Additional information is provided as follows: (a) Determine the amount of interest to be capitalized in 2025 in relation to the construction of the building. (Round answer to 0 decimal places, e.g. 5,125.) The amount of interest $