On January 1, 2016, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2017. The company borrowed $1, 750,000 at 8% on January 1 to help finance the construction. In addition to the construction loan. Highlands had the following debt outstanding throughout 2016: Construction expenditures incurred during 2016 were as follows: Required: Calculate the amount of interest capitalized for 2016 using the specific interest method. (Do not round the intermediate calculations. Round your percentage answers to 1 decimal place (i.e. 0.123 should be entered as 12.3%).)