On December 31, 2016, Sheridan Inc. borrowed $4,020,000at13% payable annually to finance the construction of a new building. In 2017, the company made the following expenditures related to this building: March 1, $482,400; June 1, $804,000; July 1, $2,010,000; December 1, $2,010,000. The building was completed in February 2018. Additional information is provided as follows.

1.Other debt outstanding 10-year,14% bond, December 31, 2010, interest payable annually$5,360,0006-year,11% note, dated December 31, 2014, interest payable annually$2,144,000 2.March 1, 2017, expenditure included land costs of $201,000 3.Interest revenue earned in 2017$65,660

(a)

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