On January 1, 2020, The Mills Conveying Equipment Company began construction of a building to be used as its office headquarters. The building was completed on December 30, 2020. Expenditures on the project were as follows:

January 2, 2020: $500,000

March 31, 2020: 400,000

September 30, 2020: 600,000

Total Accumulated Expenditures $1,500,000

On January 2, 2020 the company obtained a $500,000 construction loan with an 8% interest rate. The loan was outstanding during the entire construction period. the company's other interest bearing debt included two long term notes of $2,000,000 with a 6% interest rate and $4,000,000 with a 12% interest rate. Both notes were outstanding during the entire construction period.

Calculate the amount of interest which will be capitalized for this building. Show all of your work and clearly label your work.