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, $630,000; March 31, $730,000; June 30, $530,000; October 30, $990,000. The company arranged a 8% loan on January 1 for $960,000. Assume the $960,000 loan is not specifically tied to the construction of the building. The companys other borrowings, outstanding for the whole year, consisted of a $4 million loan and a $6 million note with interest rates of 13% and 7%, respectively. Assuming the company uses the weighted-average method, calculate the amount of interest capitalized for the year.

Note: Enter your answers in whole dollars and not in millions. Do not round intermediate calculations. Round your percentage answers to 2 decimal places (i.e. 0.1234 should be entered as 12.34%).

The options under Average accumulated expenditures is

I think I got the top part right but I am stuck on the bottom part. Please verify the top part and explain the bottom part.

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