1. On 1/1/2019, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on 12/31/2019. Expenditures on the project were as follows:

January 1, 2019 $ 1,000,000

March 1, 2019 $ 600,000

June 30, 2019 $ 800,000

October 1, 2019 $ 600,000

On 1/1/2019, the company obtained a $1,000,000 loan with a 10% interest rate. The loan was outstanding all of 2019. The companys other interest-bearing debt included 2 long-term notes of $4,000,000 at 6% and $ 6,000,000 at 8%. Both notes were outstanding during all of 2019 and 2020.

Required:

Calculate the amount of interest that Mason should capitalize in 2019 using the specific interest method.