(please answer all 3 parts)

The University of Iowa is building an 86,000-square foot indoor practice facility for their sports team. The new facility is named as the Smiths Indoor Facility. The project broke ground on January 1, 2022 and is estimated to be completed in 20 months on August 31, 2023.

During 2022, the university of Iowa incurs the following costs related to the construction of the new facility:

1/1/22 architect fees for building designs $100,000

2/1/22 paid surveying fees $60,000

2/28/22 bought construction materials $2,000,000

5/1/22 paid construction workers $750,000

9/1/22 bought more construction materials for the building $800,000

11/30/22 paid construction workers $500,000

Assume University of Iowa obtained a $2,500,000 construction loan specifically for this project and the interest on the loan is 8.5%. In addition, the university of Iowa has two other interest-bearing loans. The first loan has a total amount of $1,000,000 and an interest rate of 5% while the second loan has a total amount of 1,500,000 and an interest rate of 9%. All of the loans were outstanding throughout the entire fiscal year 2022. Assume University of Iowa is allowed to capitalize interest on self-constructed assets and the school's fiscal year ends on December 31.

1.) Assume University of Iowa uses the specific interest method for the interest calitalization. whats the amount of interest capitalized for the year 2022? (round to two decimal places)

2.) Assume University of Iowa uses the weighted average method for interest capitalization instead. whats the amount of interest that will be capitalized for the year 2022? (round to two decimal places)

3.) assume University of Iowa used the weighted average method for interest capitalization. whats the amount of interest expense thatll be reported on the 2022 income statement? (round to two decimal places)