In January of 2021, the Mateo Company began construction of its own storage facility. During 2021, $13,000,000 in construction costs were incurred as follows: January 1, $2,000,000; March 31, $4,000,000; June 30, $4,000,000; October 31, $3,000,000. Mateo took out a $4,000,000, 10% construction loan at the beginning of the year. The company had $20,000,000 in other interest-bearing debt with a weighted-average interest rate of 8%. The facility was completed early in 2022. What amount of interest should be capitalize in 2021 using the specific interest method?
