The following three situations involve the capitalization of interest.

$($a$)$

Situation I

On January $1,2025,$ Novak, Inc. signed a fixed$-$price contract to have Builder Associates construct a major plant facility at a cost of $$4,338,000.$ It was estimated that it would take $3$ years to complete the project. Also on January $1,2025,$ to finance the construction cost, Novak borrowed $$4,338,000$ payable in $10$ annual installments of $$433,800,$ plus interest at the rate of $10\%.$ During $2025,$ Novak made deposits and progress payments totaling $$1,626,750$ under the contract; the weighted$-$average amount of accumulated expenditures was $$867,600$ for the year. The excess borrowed funds were invested in short$-$term securities$,$ from which Novak realized investment income of $$261,400.$

What amount should Novak report as capitalized interest at December $31,2025?$

Capitalized interest $

Attempts: $0$ of $3$ used

$($b$)$

The parts of this question must be completed in order. This part will be available when you complete the part above.

$($c$)$

The parts of this question must be completed in order. This part will be available when you complete the part above.