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On January 1, 2020, Wells Tech signed a $950,000 two-year construction contract. Wells secured $950,000 financing at 7%. In 2020, Wells paid out $650,000. Excess

On January 1, 2020, Wells Tech signed a $950,000 two-year construction contract. Wells secured $950,000 financing at 7%.

In 2020, Wells paid out $650,000. Excess borrowed funds were invested, yielding $120,000 income.

What should Wells report as capitalized interest at December 31, 2020?

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