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, $660,000; March 31, $760,000; June 30, $560,000; October 30, $1,080,000. To help finance construction, the company arranged a 7% construction loan on January 1 for $1,020,000. The companys other borrowings, outstanding for the whole year, consisted of a $2 million loan and a $4 million note with interest rates of 9% and 6%, respectively.

Assuming the company uses the specific interest method, calculate the amount of interest capitalized for the year.

Need help with capitalized interest!

	amount	Int. Rate	Capitalized Interest
Avg. accumulated exp.	1,690,000