Please provide solutions with explanations.

On December $31,2023,$ Novak Inc., a public company, borrowed $$3$ million at $10\%$ payable annually to finance the construction of a

new building. In $2024,$ the company made the following expenditures related to this building structure: March $1,$ $$516,000$; June $1,$

$$612,000$; July $1,$$$1\mathrm{.}5$ million $($of which $$390,000$ was for the roof$)$; December $1,$ $$1\mathrm{.}5$ million $($of which $$738,000$ was for the building

HVAC$).$

Additional information follows:

Other debt outstanding:

$$3-$million, $10-$year, $12\%$ bond, dated December $31,2016,$ with interest payable annually

$$1\mathrm{.}5-$million, six$-$year, $10\%$ note, dated December $31,2020,$ with interest payable annually

The March $1,2024$ expenditure included land costs of $$156,000.$

Interest revenue earned in $2024$ on the unused idle construction loan amounted to $$54,000.$

$($a$)$

$$ Your answer is incorrect.

Determine the interest amount that could be capitalized in $2024$ in relation to the building construction. $($Do not round

intermediate calculations. Round capitalization rate to $2$ decimal places, e$.$g$.15\mathrm{.}25\%$ and final answer to $0$ decimal places, e$.$g$.5,275.)$

Interest amount to be capitalized $,$$$|$