Hart began construction of a new building last year on July 1, 2017. On the day construction was started, the land was appraised at $350,000. It had been purchased 2 years earlier for $200,000. By Dec. 31, 2017 it had spent $600,000 on construction and correctly paid and capitalized interest in the amount of $32,000.

The following added expenditures were made in 2018 prior to completion of the building on September 1, 2018:

Date	Amount
Feb. 1, 2018	840,000
Aug.1, 2018	360,000

The following 8% annual interest rate construction loans existed in 2018:

Originated	Repaid	Amount
July 1, 2017	Nov. 1, 2018	500,000
Feb. 1, 2018	Nov. 1, 2018	700,000

There were $1,000,000 of other (annualized) loans outstanding during 2017 and 2018 at an average annual interest rate of 5%.

Calculate the annualized construction expenditures for 2018:

Calculate the capitalized interest for 2018:

Indicate the following account balances on December 31, 2018

Land _______________

Building _______________