$($a$)$

Situation I

On January $1,2025,$ Windsor, Inc. signed a fixed$-$price contract to have Builder Associates construct a major plant facility at a cost

of $$4,422,000.$ It was estimated that it would take $3$ years to complete the project. Also on January $1,2025,$ to finance the

construction cost, Windsor borrowed $$4,422,000$ payable in $10$ annual installments of $$442,200,$ plus interest at the rate of $10\%.$

During $2025,$ Windsor made deposits and progress payments totaling $$1,658,250$ under the contract; the weighted$-$average

amount of accumulated expenditures was $$884,400$ for the year. The excess borrowed funds were invested in short$-$term

securities$,$ from which Windsor realized investment income of $$254,400.$

What amount should Windsor report as capitalized interest at December $31,2025?$

Capitalized interest $