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On January 1, 2021, the Mason Manufacturing Company began construction of a building to be...

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Accounting

On January 1, 2021, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on October 31, 2022. Expenditures on the project were as follows:

January 1, 2021

$

4,000,000

March 1, 2021

1,800,000

June 30, 2021

2,000,000

October 1, 2021

2,800,000

January 31, 2022

450,000

April 30, 2022

783,000

August 31, 2022

1,080,000

On January 1, 2021, the company obtained a $5,000,000 construction loan with a 9% interest rate. The loan was outstanding all of 2021 and 2022. The companys other interest-bearing debt included two long-term notes of $6,000,000 and $9,000,000 with interest rates of 5% and 8%, respectively. Both notes were outstanding during all of 2021 and 2022. Interest is paid annually on all debt. The companys fiscal year-end is December 31.

How much interest would be capitalized in 2021?

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