Requirement: Calculate the amount of interest capitalized for 2023 using the specific interest method

On January 2, 2023, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2024. The company borrowed $1,500,000 at 8% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2023: $5,000,000, 12% bonds $3,000,000, 8% long-term note Construction expenditures incurred during 2023 were as follows: January 1 $ 600,000 March 31 1,200,000 June 30 800,000 September 30 600,000 December 31. .... ....... 400,000