Use this information for the following two questions.

Ship-Builders Co. began construction of a new cutter for the U.S. Coast Guard on January 1, 2018 and completed construction of the ship on March 31, 2019. To help finance construction, Ship-Builders took out an $8,200,000, 2-year, 7% loan on January 1, 2018. Interest on the loan was to be paid annually at the end of each year and the principal at the end. Ship-Builders has no other outstanding interest-bearing debt. Ship-Builders made the following expenditures in conjunction with this construction project:

Date	Amount
2/1/2018	$	1,600,000
3/1/2018		650,000
4/1/2018		600,000
8/1/2018		1,100,000
10/1/2018		700,000
11/1/2018		800,000
3/1/2019		2,500,000

How much interest should Ship-Builders Co. capitalize in 2018?

How much interest should Ship-Builders Co. expense in 2018?