During 2018, Madeline Industries Incorporated constructed a new manufacturing facility at a total cost of $7,257,143. Madeline incurred construction costs on the facility as follows:
January 2, 2018 $1,000,000
March 1, 2018 3,000,000
June 1, 2018 1,257,143
November 1, 2018 2,000,000
The project was completed on December 31, 2018. The company had the following debt outstanding at the start of construction:
10%, five year loan to finance construction of the facility, dated January 2, 2018, $3,600,000
12%, 20 year bonds issued at par on April 30, 2001, $8,400,000
8%, ten year note payable, dated March 1, 2015, $1,800,000
Requirement
Determine the amount of interest to be capitalized by Madeline Industries for 2018.