A building was constructed on land purchased last year at a cost of $150,000. Construction began on January 1 and was completed on December 31. The payments to the contractor were as follows.

Date Payment

1/1 $120,000

6/1 320,000

9/1 460,000

11/1 100,000

To finance construction of the building, a $400,000, 12% construction loan was taken out on January 1. The loan was repaid on December 31. The firm had $200,000 of other outstanding debt during the year at a borrowing rate of 8%.

Determine the amount of interest to be capitalized.

(if possible, show the whole working step plz)