On January 1, 2016, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2017. Expenditures on the project were as follows: January 1, 2016 March 1, 2016 June 30, 2016 $1,500,000 1,200,000 1,400,000 October 1, 20161,200,000 January 31,2017360,000 April 30, 2017 August 31,2017990 693,000 000 On January 1, 2016, the company obtained a $4,000,000 construction loan with a 14% interest rate The loan was outstanding all of 2016 and 2017. The company's other interest-bearing debt included two long- term notes of $1,000,000 and S4 000 000 with interest rates of 10% and 12% respectively. Both notes were outstanding during all of 2016 and 2017. Interest is paid annually on all debt The company's fiscal year-end is December 31 Required: 1. Calculate the amount of interest that Mason should capitalize in 2016 and 2017 using the specific interest method