On December 31, 2020, Cheyenne Inc., a public company, borrowed $3 million at 11% payable annually to finance the construction of a new building. In 2021, the company made the following expenditures related to this building structure (unless otherwise noted): March 1, $519,000; June 1, $630,000; July 1, $1.5 million (of which $412,000 was for the roof); December 1, $1.5 million (of which $728,000 was for the building HVAC). Additional information follows: 1. Other debt outstanding: $5-million, 10-year, 12% bond, dated December 31, 2013, with interest payable annually $1.5-million, six-year, 10% note, dated December 31, 2017, with interest payable annually 2. The March 1, 2021 expenditure included land costs of $147,000. 3. Interest revenue earned in 2021 on the unused idle construction loan amounted to $52,400. PART 1: Determine the interest amount that could be capitalized in 2021 in relation to the building construction. (Do not round intermediate calculations. Round capitalization rate and final answer to 0 decimal places, e.g. 5,275.) Interest amount to be capitalized