On March 1, 2017, Crane Company purchased land for an office site by paying $2600000 cash. Crane began construction on the office building on March 1. The following expenditures were incurred for construction:

Date		Expenditures
March 1, 2017		$1700000
April 1, 2017		2460000
May 1, 2017		4400000
June 1, 2017		4700000

The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3500000 was borrowed on March 1, 2017 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2017 was a $1400000, 12%, 6-year note payable dated January 1, 2017. The actual interest cost incurred during 2017 was