The following two situations involve the capitalization of borrowing costs. (a) - Youranswer is incorrect. Situation 1 On January 1,2022, Stellar Outfitters signed a fixed-price contract to have Builder Associates construct a major plant facility at a cost of R$3,760,000. It was estimated that it would take 3 years to complete the project. Also on January 1, 2022, to finance the construction cost, Stellar borrowed R$3,760,000 payable in 10 annual installments of R$376,000, plus interest at the rate of 10%. During 2022, Stellar made deposit and progress payments totaling R $1,410,000 under the contract. The excess borrowed funds were invested in short-term securities, from which Stellar realized investment income of R$47,000. What amount should Stellar report as capitalized borrowing cost at December 31, 2022? Capitalized borrowing cost R\$