On December 31, 2019, Sarasota Inc. borrowed $3,960,000 at 13% payable annually to finance the construction of a new building. In 2020, the company made the following expenditures related to this building: March 1, $475,200; June 1, $792,000; July 1, $1,980,000; December 1, $1,980,000. The building was completed in February 2021. Additional information is provided as follows.

1.		Other debt outstanding
		10-year, 14% bond, December 31, 2013, interest payable annually		$5,280,000
		6-year, 11% note, dated December 31, 2017, interest payable annually		$2,112,000
2.		March 1, 2020, expenditure included land costs of $198,000
3.		Interest revenue earned in 2020		$64,680

(a)

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Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building.

The amount of interest

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