On January 1, 2011, the Mills Conveying Equipment Company began construction of a building to be used as its office headquarters. The building was completed on June 30, 2012. Expenditures on the project, mainly payments to subcontractors, were as follows: January 3, 2011 $500,000 March 31, 2011 400,000 September 30, 2011 600,000 Accumulated Expenditures at December 31, 2011 $1,500,000 (before interest capitalization) January 31, 2012 $600,000 April 30, 2012 300,000 On January 2, 2011, the company obtained a $1,000,000 construction loan with an 8% interest rate. The loan was outstanding during the entire construction period. The companys other interest-bearing debt included two long-term notes of $2,000,000 and $4,000,000 with interest rates of 6% and 12%, respectively. Both notes were outstanding during the entire construction period. B. How much interest will be capitalized in 2011