Exercise $10-22($Algo$)$ Interest capitalization $[$LO$10-7]$

On January $1,2024,$ the Marjlee Company began construction of an office building to be used as its corporate

headquarters. The building was completed early in $2025.$ Construction expenditures for $2024,$ which were incurred

evenly throughout the year, totaled $$7,500,000.$ Marjlee had the following debt obligations which were outstanding

during all of $2024$:

Required:

Calculate the amount of interest capitalized in $2024$ for the building using the specific interest method.

Interest capitalized