Computing and llecording interest Capitalization The followins intomiagon is trom Bowin inc. for a jong term constructon propect that is expected to be completed in january of next year, The construction propect a for a building intended for the company's own use. The cophal expendmure on januayy 1 of the currene year is for the purchate of land for the balding site. No hew sonstruction laans were opened for the peoject during the year. Air debt was outsanding tor the full year. Calculation of annual interest rate used in the schedule that follows \begin{tabular}{|lrr|c|} \hline \multicolumn{2}{c}{ Numerator + Denominator =} & Interest Rate \\ \hline General Debt $ & 0+5 & 0 & \\ \hline \end{tabular} \begin{tabular}{|l|ll|} \hline 1. Capitalized interest & $ & 0 \\ \hline 2. Interest expense & $ & 0 \\ \hline \end{tabular} b. Prepare the summary entry to record the construction expenditures and interest for the year. Assume all payments are in cash. c. Assume that the project is completed onjanuary 1 of the next year (1) Prepare the entry to transter costs from construction in process to property and equipment. (2) Prepare the annual entry for deprecoation for that next year, assuming that the buiding has a useful life of 30 years wath no salvage valoe, and that the company uses the straigheline. depreciation method