Interest During Construction

Tallman Company is constructing a production complex that qualifies for interest capitalization. The following information is available:

Capitalization period: January 1, 2016, to June 30, 2017

Expenditures on project:

2016:
	January 1	$ 588,000
	May 1	393,000
	October 1	708,000
2017:
	March 1	1,596,000
	June 30	552,000

Amounts borrowed and outstanding: $1.2 million borrowed at 10%, specifically for the project $7 million borrowed on July 1, 2015, at 12% $19 million borrowed on January 1, 2011, at 6%

Required:

Note: Round all final numeric answers to the nearest dollar.

Compute the amount of interest costs capitalized each year.

What is Capitalized interest in 2016?	$
What is Capitalized interest in 2017?	$

If it is assumed that the production complex has an estimated life of 20 years and a residual value of $0, compute the straight-line depreciation in 2017.

$