Bullock Company is constructing a building for its own use and has been capitalizing interest based on average expenditures on a quarterly basis since the project began last year. The following expenditures are made during the first quarter: January 1, $5,040,000; February 1, $4,590,000; and March 31,$6,570,000. Bullock had the following debts outstanding during this quarter. a. Compute (1) interest to be capitalized and (2) interest to be expensed for this first quarter. b. Prepare the entry to record the construction expenditures and the interest for the first quarter. Assume all payments are in cash. Bullock Company is constructing a building for its own use and has been capitalizing interest based on average expenditures on a quarterly basis since the project began last year. The following expenditures are made during the first quarter: January 1, $5,040,000; February 1, $4,590,000; and March 31,$6,570,000. Bullock had the following debts outstanding during this quarter. a. Compute (1) interest to be capitalized and (2) interest to be expensed for this first quarter. b. Prepare the entry to record the construction expenditures and the interest for the first quarter. Assume all payments are in cash