Acompany constructs a building for its own use. construction began on january 1 and ended on december 31. the expenditures for construction were as follows: january 1, $1,500,000; and july 1, $3,000, 000. to finance construction, the company arranged a 7% construction loan on january 1 for $2,100,000. the company's other borrowings, outstanding for the whole year, consisted of a $15 million loan with an interest rate of 8%. assuming in capitalizing interest the company uses the interest rate for specific contruction borrowings up to the amount of the borrowing and the average rate on other borrowings for any excess construction spending, calculate the amount of interest capitalized for the year and prepare the journal entry.