(b) Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2020.

On December 31, 2019, Nash Inc. borrowed $4,380,000 at 12% payable annually to finance the construction of a new building. In 2020, the company made the following expenditures related to this building: March 1, $525,600; June 1, $876,000; July 1, $2,190,000; December 1, $2,190,000. The building was completed in February 2021. Additional information is provided as follows. 1. Other debt outstanding 10-year, 13% bond, December 31, 2013, interest payable annually 6-year, 10% note, dated December 31, 2017, interest payable annually March 1, 2020, expenditure included land costs of $219,000 Interest revenue earned in 2020 $5,840,000 $2,336,000 2. 3. $71,540 (a) Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building. The amount of interest $