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 $1,$ $$8,400,000$; February $1,$ $$7,650,000$; and March $31,$ $$10,950,000.$ Bullock had the following debts outstanding during this quarter.

Debt Amount

Note payable, $10\%,$ incurred specifically to finance construction $$4,800,000$

Short$-$term note payable, $15\%7,500,000$

Mortgage note payable, $8\%3,600,000$

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