On January 1, 2023, Marigold Inc. signed a fixed-price contract to have Builder Associates construct a major head office facility at a cost of $4 million. It was estimated that it would take three years to complete the project. Also, on January 1,2023 , to finance the construction cost, Marigold borrowed $4 million that is repayable in 10 annual instalments of $400,000, plus interest at the rate of 10%. During 2023, Marigold made deposit and progress payments totalling $1.5 million under the contract; the weighted average amount of accumulated expenditures was $791,000 for the year. The excess amount of borrowed funds was invested in short-term securities, from which Marigold realized investment income of $24,300. For situation 1, what amount should Marigold report as capitalized borrowing costs at December 31, 2023? (If an answer is zero, please enter 0 . Do not leave any fields blank.) Capitalized borrowing $