Merriweather Company began construction on a new building in 2023. The building is expected to be completed by December 31, 2023. During 2023, payments to the contractor are $500,000 on January 1, $300,000 on May 1, and $420,000 on October 1. The company secured a construction loan of $500,000 at 6% on January 1, 2023. The company also has $10,000,000 in 9% bonds outstanding in 2023.

Required:

Determine the amount of interest expense to capitalize in 2023.