Situation On January 1, 2022, Headland Outfitters signed a fixed-price contract to have Builder Associates construct a major plant facility at a cost of R$3,440,000. It was estimated that it would take 3 years to complete the project. Also on January 1, 2022, to finance the construction cost, Headland borrowed R$3,440,000 payable in 10 annual installments of R$344,000, plus interest at the rate of 10%. During 2022, Headland made deposit and progress payments totaling R$1,290,000 under the contract. The excess borrowed funds were invested in short-term securities, from which Headland realized investment income of R$43,000. What amount should Headland report as capitalized borrowing cost at December 31, 2022? Capitalized borrowing cost R$ R$