On January 1, 2025, Tamarisk, Inc, signed a foxed-price contract to have Homeward Construction construct a major plant facility at a cost of $7,900,000. It was estimated that it would take 2 years to complete the project. Also on January 1,2025, to finance the construction cost, Tamarisk borrowed $7,900,000 payable in 8 annual installments of $987,500, plus interest at the rate of 8%. During 2025, Tamarisk made deposit and progress payments totaling $2,962,500 under the contract; the weightedaverage amount of accumulated expenditures was $1,185,000 for the year. The excess borrowed funds were invested in shortterm securitics, from which Tamarisk realized investment income of $177,000. What amount should Tamarisk report as capitalized interest at December 31, 2025? Capitalized interest $