Matrix Inc. borrowed $1,000,000 at 8% to finance the construction of a new building for its own use. Construction began on January 1, 2016, and was completed on October 31, 2016. Expenditures related to this building were: January 1 $252,000 (includes cost of purchasing land of $150,000) May 1 310,000 July 1 420,000 October 31 276,000

In addition, Matrix had additional debt (unrelated to the construction) of $500,000 at 9% and $800,000 at 10%. All debt was outstanding for the entire year.

Required: Compute the amount of interest capitalized related to the construction of the building. $

If the expenditures are assumed to have been incurred evenly throughout the year:

Compute weighted average accumulated expenditures $ 629,000

Compute the amount of interest capitalized on the building