Accumulated Expenditures, U.S. GAAP. On January 1, 2018, Union Power and Light commenced construction of a new generating plant to serve the northeast corridor of the state. The total cost of the project is $4,100,000, and it will be completed on June 1, 2019. Scheduled payments to contractors are summarized in the following table.

Date                                            Amount Paid

January 1, 2018 .......................    $  950,000

April 1, 2018 ...........................          300,000

July 1, 2018 .............................      1,200,000

Total 2018 ..............................    $2 ,450,000

February 1, 2019 ...................    $1,150,000

April 1, 2019 ..........................          500,000

Total 2019 .............................     $1,650,000

Total expenditures ...............    $4,100,000

To finance the project, Union Power obtained a bank loan on January 1, 2018, for $1,800,000 at 10% interest. Union's other general (or indirect) outstanding debt during 2018 and 2019 includes the following:

General Debt                            Amount

7% note .............................    $1,000.000

9% note .............................      3,500,000

6% bonds ..........................      2,000,000

Total ..................................    $6,500,000

All debt was issued at par and is outstanding for the full year. Interest for all debt is paid on December 31.

Required
a. Determine the amount of interest to be capitalized and expensed by Union Power Company for both 2018 and 2019.
b. Prepare all journal entries required.
c. Determine the final valuation of the power plant.