On January 1, ABC borrowed $300,000 at 9% to help finance the construction of a new building. Other than the construction note, ABC had two notes outstanding ($500,000 at 12% and $1,000,000 at 9%). The following expenditures were made during the year:

Date Expenditures

January 1 $ 360,000

November 1 900,000

Compute the amount of interest that will be capitalized. $________________