On December 31, 2009, Hurston Inc. borrowed $4,000,000 at 10% payable annually to finance the construction of a new building. In 2010, the company made the following expenditures related to this building: March 1, $250,000; June 1, $500,000; July 1, $1,600,000; December 1, $1,100,000.

Additional information is provided as follows.

1. Other debt outstanding

10-year, 11.5 % bond, December 31, 2003, interest payable annually

6-year, 12.5 % note, dated December 31, 2007, interest payable annually

2. March 1, 2010, expenditure included land costs of $150,000
3. Interest revenue earned in 2010 on funds related to specific borrowing $49,000

Instructions:

Determine the amount of interest to be capitalized in 2010 in relation to the construction of the building.