On january 1, 2016, randolf company signed a contract to have rory associates construct a manufacturing facility at a cost of $14,000,000. it was estimated that it would take three years to complete the project. also on january 1, 2016, to finance the construction cost, randolf borrowed $14,000,000 payable in seven annual installments of $2,000,000 plus interest at the rate of 9%. during 2016, randolf made progress payments totaling $5,000,000 under the contract, and the average amount of accumulated expenditures was $3,000,000 for the year. the excess borrowed funds were invested in short-term securities, from which randolf realized investment income of $330,000. what amount should randolf report as capitalized interest at december 31, 2016?