A building was constructed last year for Agro Co. for use as a production facility. Construction began on January 1 and was completed on December 31 . The payments to the contractor were as follows. To finance construction of the building, a $850,000,11% construction loan was taken out on January 1. The loan was repaid on December 31. The firm had two sources of general debt: $600,000 note payable, 8% annual interest, and $800,000 par value bonds, 9.5% annual interest. Determine the amount of interest to be capitalized