On December 31, 2023, Blue Inc., a public company, borrowed $4 million at 12% payable annually to finance the construction of a new building. In 2024, the company made the following expenditures related to this building structure: March 1, $511,000; June 1, $624,000; July 1, $1.5 million (of which $359,000 was for the roof); December 1, $1.5 million (of which $653,000 was for the building HVAC). Additional information follows: 1 Other debt outstanding: $3-million, 10-year, 13% bond, dated December 31, 2016, with interest payable annually $1.5-million, six-year, 10% note, dated December 31, 2020, with interest payable annually 2 The March 1, 2024 expenditure included land costs of $145,000. 3. Interest revenue earned in 2024 on the unused idle construction loan amounted to $48,700. (a) Determine the interest amount that could be capitalized in 2024 in relation to the building construction. (Do not round intermediate calculations. Round capitalization rate to 2 decimal places, e.g. 15.25% and final answer to O decimal places, e.g. 5,275.)