On December 31, 2016, Nash Inc. borrowed $4,260,000at12% payable annually to finance the construction of a new building. In 2017, the company made the following expenditures related to this building: March 1, $511,200; June 1, $852,000; July 1, $2,130,000; December 1, $2,130,000. The building was completed in February 2018. Additional information is provided as follows.

1.Other debt outstanding 10-year,13% bond, December 31, 2010, interest payable annually$5,680,0006-year,10% note, dated December 31, 2014, interest payable annually $2,272,0002.March 1, 2017, expenditure included land costs of $213,0003.Interest revenue earned in 2017$69,580

(a)

Determine the amount of interest to be capitalized in 2017 in relation to the construction of the building.

The amount of interest$