On December 31, 2024, Blossom Inc. borrowed $4,380,000 at 12% payable annually to finance the construction of a new building. In 2025, the company made the following expenditures related to this building: March 1, $525,600; June 1, $876,000; July 1, $2,190,000; December 1, $2,190,000. The building was completed in February 2026. Additional information is provided as follows. 1. 2. 3. (a) Other debt outstanding: 10-year, 13% bond, December 31, 2018, interest payable annually 6-year, 10% note, dated December 31, 2022, interest payable annually March 1, 2025, expenditure included land costs of $219,000. Interest revenue of $71,540 earned in 2025. $5,840,000 The amount of interest 2,336,000 Determine the amount of interest to be capitalized in 2025 in relation to the construction of the building.

On December 31,2024, Blossom Inc. borrowed $4,380.000 at 12% payable annually to finance the construction of a new building. In 2025, the company made the following expenditures related to this bulling: March 1, $525,600; fune 1, $876,000; fuly 1 . $2,190,000; December 1,$2,190,000. The building was completed in February 2026. Additional information is provided as follows. (a) Determine the amount of interest to be capitatized in 2025 in relation to the construction of the building: The amount of interest