Exercise 10-24 Interest capitalization [LO10-7] On January 1, 2013, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2014. The only interest-bearing debt the company had outstanding during 2013 was long-term bonds with a book value of $10,000,000 and an effective interest rate of 8%. Construction expenditures incurred during 2013 were as follows: January 1 $ 500,000 March 1 600,000 July 31 480,000 September 30 600,000 December 31 300,000 Required: Calculate the amount of interest capitalized for 2013