On January 1, 2025, Vaughn, Inc. signed a fixed-price contract to have Builder Associates construct a major plant facility att a cost of $4,340,000. It was estimated that it would take 3 years to complete the project. Also on January 1, 2025, to finance the construction cost, Vaughn borrowed $4,340,000 payable in 10 annual installments of $434,000, plus interest at the rate of 10%. During 2025, Vaughn made deposits and progress payments totaling $1,627,500 under the contract; the weighted-average amount of accumulated expenditures was $868,000 for the year. The excess borrowed funds were invested in short-term securities, from which Vaughn realized investment income of $255,800. What amount should Vaughn report as capitalized interest at December 31,2025? Capitalized interest