On January 1, 2021, Barden Building Company issued a note to Tartan Bank to finance a plant

construction (the first debt listed in the table below). Barden invested the proceeds from the

note in a short-term marketable security to earn interest at 10% until it found the location ideal

for the plant construction. On March 1, 2021, Barden found the location, and purchased a parcel

of land for $5,000,000 in cash; it also paid $400,000 for the lawyer's service to obtain the title,

as well as $600,000 for surveying cost. The excavation started on the same date. On March 1,

2021 Barden also hired an architect to work on the design for $240,000. On December 1, 2021,

Barden spent $4,800,000 for construction of the plant.

The company had the following debt outstanding at December 31, 2021:

1.

10%, 5-year note to finance construction of plant, dated January 1, 2021,

with interest payable annually on January

2.

12%, ten-year bonds issued at par on December 31, 2015, with interest

payable annually on December 31

3.

9%, 2-year note payable, died January 1, 2020, with interest payable

annually on January 1

$3,600,000

4,000,000

2.000,000

The construction is not finished by December 31, 2021.

Instructions

Compute the amounts of each of the following:

Total interest to be capitalized during 2021. Please show middle steps to support your calculation.