Capitalized Interest Expense problem:

Gamecock Company decided to expand operations in Greenville, NC. On January 2, 2015 Gamecock began construction on the new facility for its own use. Construction was completed December 30, 2015. Gamecock Company borrowed $1,000,000 at 5% on January 1^st to help finance construction. In addition to construction loan, had following debt outstanding throughout 2015:

$2,000,000; 7% bonds

$7,000,000; 9% long-term note

Construction Expenditures incurred during 2015 were as follows:

Date	Payment
January 1	$100,000
March 1	900,000
May 30	400,000
October 1	500,000

1. Calculate the amount of interest Gamecock will capitalize in 2015 in relation to the construction of the new building.

2. Assuming no other expenditures than those listed above, at what amount is the building recorded on the December 31, 2015 balance sheet?

3. How much interest expense will Gamecock report on its 2015 income statement?

Please show work and explain how!