On December 31, 2019, Headland Inc. borrowed $3,900,000 at 12% payable annually to finance the construction of a new building. In 2020, the company made the following expenditures related to this building: March 1, $468,000; June 1, $780,000; July 1, $1,950,000; December 1, $1,950,000. The building was completed in February 2021. Additional information is provided as follows. 1. 2. 3. (a) Other debt outstanding 10-year, 13% bond, December 31, 2013, interest payable annually 6-year, 10% note, dated December 31, 2017, interest payable annually March 1, 2020, expenditure included land costs of $195,000 Interest revenue earned in 2020 X Your answer is incorrect. The amount of interest $ $5,200,000 12539 $2,080,000 Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building. $63,700

On December 31,2019 . Headland Inc. borrowed $3,900,000 at 12% payable annually to finance the construction of a new building. In 2020 , the company made the following expenditures related to this building:March 1, $468,000; June 1, $780,000; July 1 . $1,950,000; December 1,\$1,950,000. The building was completed in February 2021. Additional information is provided as follows. (a) Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building