On January 1, 2021, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The only interest-bearing debt the company had outstanding during 2021 was long-term bonds with a book value of $10,000,000 and an effective interest rate of 8%. Construction expenditures incurred during 2021 were as follows:
January 1 ...............$ 500,000
March 1 ....................600,000
July 31 ......................480,000
September 30 .........600,000
December 31 ..........300,000
Required:
Calculate the amount of interest capitalized for 2021.