A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $640,000; March 31, $740,000; June 30, $540,000; October 30, $1,020,000. To help finance construction, the company arranged a 9% construction loan on January 1 for $980,000. The companys other borrowings, outstanding for the whole year, consisted of a $4 million loan and a $6 million note with interest rates of 11% and 8%, respectively. Assuming the company uses the specific interest method, calculate the amount of interest capitalized for the year. (Do not round intermediate calculations. Round your percentage answers to 2 decimal places (i.e. 0.1234 should be entered as 12.34%).)

Weight Date Expenditure Average 2/12 9/12 640,000 555,000 270,000 173,400 $1,638,400 $ 640,000 x 740,000x 540,000>x January 1 March 31 June 30 October 30 Accumulated expenditures 1,020,000! $ 2,940,000 2/12 | = Capitalized Interest Interest Rate Average Average accumulated expenditures $ 1,638,400 0 0 0 0 0