Situation I On January 1, 2025, Crane, Inc. signed a fixed-price contract to have Homeward Construction construct a major plant facility at a cost of $8,200,000. It was estimated that it would take 2 years to complete the project. Also on January 1, 2025, to finance the construction cost, Crane borrowed $8,200,000 payable in 8 annual installments of $1,025,000, plus interest at the rate of 8% During 2025, Crane made deposit and progress payments totaling $3,075,000 under the contract; the weighted-average amount of accumulated expenditures was $1,230,000 for the year. The excess borrowed funds were invested in short-term securities. from which Crane realized investment income of $174,000. What amount should Crane report as capitalized interest at December 31, 2025? Capitalized interest S 98400

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