On January 1, 2020, Swifty Inc. signed a fixed-price contract to have Builder Associates construct a major head office facility at a cost of $3 million. It was estimated that it would take three years to complete the project. Also, on January 1,2020 , to finance the construction cost, Swifty borrowed $3 million that is repayable in 10 annual instalments of $300,000, plus interest at the rate of 10%. During 2020,5 wifty made deposit and progress payments totalling $1.6 million under the contract; the weighted-average amount of accumulated expenditures was $802,000 for the year. The excess amount of borrowed funds was invested in shortterm securities, from which Swifty realized investment income of $26,400. For situation 1, what amount should Swifty report as capitalized borrowing costs at December 31, 2020? (If an answer is zero, please enter 0 . Do not leave any fields blank.) Capitalized borrowing