ON JANUARY 1,2021, THE HIGHLANDS COMPANY BEGAN CONSTRUCTION ON A NEW MANUFACTURING FACILITY FOR ITS OWN USE. tHE BUILDING WAS COMPLETED IN 2022. THE COMPANY BORROWED $2,500,000 AT 8% ON jANUARY 1 TO HELP FINANCE THE CONSTRUCTION. IN ADDITION TO THE CONSTRUCTION LOAN, HIGHLANDS HAD THE FOLLOWING DEBT OUTSTANDING THROUGHOUT 2021:

$9,000,000, 9% BONDS

$6,000,000, 8% LONGTERM NOTE

CONSTRUCTION EXPENDITURES INCURRED DURING 2021 WERE AS FOLLOWS:

JAN 1 $1,000,000

MARCH 31 1,600,000

JUNE 30 $1,280,000

SEPT 30 $1,000,000

DEC 31 $800,000

CALCULATE THE AMOUNT OF INTEREST CAPITALIZED FOR 2021 USING THE SPECIFIC INTEREST METHOD

PLEASE SHOW ALL WORK FPR EXPENDITURES, WEIGHT AND AVERAGE. AS WELL AS AVG ACCUMULATED EXPENDITURES AND INTREST RATES