Alta Company is constructing a production complex that qualifies for interest capitalization. The following information is available:

• Capitalization period: January 1, 2019, to June 30, 2020
• Expenditures on project:

  2019:
  January 1	$ 540,000
  May 1	465,000
  October 1	600,000
  2020:
  March 1	1,500,000
  June 30	600,000

• Amounts borrowed and outstanding: $1.5 million borrowed at 12%, specifically for the project $6 million borrowed on July 1, 2018, at 14% $14 million borrowed on January 1, 2017, at 8%

Required:

1. Compute the amount of interest costs capitalized each year.

   Capitalized interest, 2019	$
   Capitalized interest, 2020	$

2. If it is assumed that the production complex has an estimated life of 20 years and a residual value of $0, compute the straight-line depreciation in 2020. Round answer to two decimal places.

   $