On January 1, 2018, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2019. The company borrowed $1,500,000 at 10% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2018:

$8,000,000, 15% bonds

$2,000,000, 10% long-term note

Construction expenditures incurred during 2018 were as follows:

January 1	$	660,000
March 31		1,260,000
June 30		872,000
September 30		660,000
December 31		460,000

Required: Calculate the amount of interest capitalized for 2018 using the specific interest method.

Date	Expenditure		Weight			Average
January 1		x			=
March 31		x			=
June 30		x			=
September 30		x			=
December 31		x			=
Accumulated expenditure
	Average		Interest Rate			Capitalized Interest
Average accumulated expenditures
		x		%	=
		x		%	=