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, $600,000; March 31, $700,000; June 30, $500,000; October 30, $900,000. To help finance construction, the company arranged a 9% construction loan on January 1 for $900,000. The company's other borrowings, outstanding for the whole year, consisted of a $4 million loan and a $6 million note with interest rates of 11% and 6%, 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 (ie. 01234 should be entered as 12.34%).) Date Expenditure Weight Average January 1 March 31 June 30 October 30 Accumulated expenditures S 600,000x 700,0001 500,000x 900.0001 12/12600,000 525,000 250,000 150,000 $1,525,000 9/12 6/12 = S 2,700,000 Capitalized Interest Average Interest Rate Average accumulated expenditures $ 1,525,000 9,000,000 10,000,000 9.00% | $ 810,000 600,000 $1,410,000 Construction loan ther loans (not construction) 6.001%