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A company constructs a building for its own use. Construction began on January 1 and ended on December 3 0 . The expenditures for construction

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, $570,000; March 31, $670,000; June 30, $470,000; October 30, $810,000. The company arranged a 10% loan on January 1 for $840,000. Assume the $840,000 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 14% and 10%, respectively.
Assuming the company uses the weighted-average method, calculate the amount of interest capitalized for the year.

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