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Martinez Furniture started construction of a combination office and warehouse building for its own use at an estimated cost of 4,340,000 on January 1, 2022. Martinez expected to complete the building by December 31, 2022. Martinez has the following debt obligations outstanding during the construction period. Construction loan-10% interest, payable semiannually, issued December 31, 2021 Short-term loan-8% interest, payable monthly, and principal payable at maturity on May 30, 2023 1.770,000 1.416,000 Long-term loan-9% interest, payable on January 1 of each year. Principal payable on January 1, 2026 885,000 (a) X Your answer is incorrect. Assume that Martinez completed the office and warehouse building on December 31, 2022 as planned at a total cost of 4,602,000. The following expenditures were made during the period forthis project: January 1, 885,000; April 1, 1,285,000, July 1, 1,685,000; and October 1, 560,000. Excess funds from the construction loans were invested during the period and earned 19.400 of investment income. Compute the amount of borrowing costs to be capitalized for this project. (Use interest rates rounded to 2 decimal places, eg. 7.58% for computational purposes and round final answers to decimal places, eg. 5,275.) Borrowing costs 369930

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