(4) E10-8 Capitalization of Interest) On December 31, 2011, Hurston Inc. borrowed \\( \\$ 3,000,000 \\) at \12 payble ghnually to finance the construction of a new building. In 2012, the company made the following ependitures related to this building: March 1, \\( \\$ 360,000 \\); June \\( 1, \\$ 600,000 \\); July 1, \\( \\$ 1,500,000 \\); December 1 . \\( 51,200,000 \\). Additional information is provided as follows. Instructions (a) Determine the amount of interest to be capitalized in 2012 in relation to the construction of th building: (b) Prepare the joumal entry to record the capitalization of interest and the recognition of intere expense, if any, at December \\( 31,2012 \\)