CAPITALIZATION OF INTEREST 8. On January 1, 2015, Sl yder Retail Associates began constructing its own warehouse. The project was ember 31, 2015. Slyder prepares annual financial statements using U.S. GAAP and has scal year end. During the year, Slyder made the following payments to the contractor: completed on Dec 2015 Date February 1 April I November December 31 Amount of Payment 54,200,000 x IlIZ ,850,000 1,400.000 xau2 ? 1, oso, ou o 1,980,000X 1112 svou 5.000,000 $12,580,000 Total Expenditures Slyder borrowed specifically for this project by issuing a $2,000,000, 8% note at SwoboBank on January 1, 2015. Interest is due December 31 of each year. Slyder also reports the following general debt outstanding for all of 2015, with interest due December 31 of each year Interest Rate 9% 11% Amount $1,700,000 2.300,000 $4,000,000 Total Prepare the journal entry made by Slyder Retail on December 31, 2015, to recognize interest costs for the year. (8 points) 1,000 ??? ama Cash No pabla 2 Modified from Example 11.8 of Intermediate Accounting by Gordon, Raedy, and Sannella