Hawkins Corporation began construction of a motel on March 31, 2016. The project was completed on April 31, 2017. No new loans were required to fund construction. Hawkins does have the following two interest-bearing liabilities that were outstanding throughout the construction period:

$4,000,000, 6% note

$16,000,000, 10% note

Construction expenditures incurred were as follows:

March 31, 2016 $4,000,000

June 30, 2016 $6,000,000

November 30, 2016 $1,800,000

February 28, 2017 $3,000,000

The company's fiscal year-end is December 31.

Required:

Calculate the amount of interest capitalized for 2016 and 2017.