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7. A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The weighted average expenditures for construction were $980,000 during the year. The company arranged a 10% construction loan on January 1 for $700,000. The company's other borrowings, outstanding for the whole year, consisted of a $2 million loan (8%) and a $3 million note (6%). Assuming the company uses the specific interest method, calculate the amount of interest capitalized for the year. 89,040 $