On December 1, 2019, Montgomery Industries contracted with Gannett Construction to build a factory building. On that same day, Montgomery borrowed $500,000 on a construction loan at 10% interest to finance this project, and it immediately paid Gannett $120,000 as an initial payment on the contract. Construction of the factory building began on January 1, 2020, and Montgomery made the following additional payments to Gannett during 2020:

Date Amount

March 1 $72,000

May 1 180,000

July 1 36,000

October 1 64,000

The project was completed on October 1, 2020.

Determine the cost of the factory building, including the amount of any capitalized interest