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 8% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2018:

$5,000,000, 12% bonds

$3,000,000, 8% long-term note

Construction expenditures incurred during 2018 were as follows:

January 1 $600,000

March 311,200,000

June 30800,000

September 30600,000

December 31400,000

Required:

Calculate the amount of interest capitalized for 2018 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%).)