On January 1, 2018, the Highlands Company began construction on a new manufacturing facility for its ownuse. The building was completed in 2019. The company borrowed $2,050,000 at 11% on January 1 to helpfinance the construction. In addition to the construction loan, Highlands had the following debt outstandingthroughout 2018:$6,000,000, 16% bonds$4,000,000, 11% long-term note

Construction expenditures incurred during 2018 were as follows:

January 1$840,000

March 31 1,440,000

June 30 1,088,000

September 30840,000

December 31 640,000

Required:Calculate the amount of interest capitalized for 2018 using the specific interest method.(Do not round theintermediate calculations. Round your percentage answers to 1 decimal place (i.e. 0.123 should beentered as 12.3%).)