Bullock Company is constructing a building for its own use and has been capitalizing interest based on average expenditures on a quarterly basis since the project began last year. The following expenditures are made during the first quarter: January $1,$ $$3,360,000$; February $1,$ $$3,060,000$; and March $31,$ $$4,380,000.$ Bullock had the following debts outstanding during this quarter.

Debt Amount

Note payable, $10\%,$ incurred specifically to finance construction $$1,920,000$

Short$-$term note payable, $15\%3,000,000$

Mortgage note payable, $8\%1,440,000$

a$.$ Compute $(1)$ interest to be capitalized and $(2)$ interest to be expensed for this first quarter