Exercise 10-8 (Capitalization of Interest) On December 31, 2018, Tsang Group borrowed $3,000,000 at 12% payable annually to finance the construction of a new building. In 2019, the company made the following expenditures related to this building: March 1 $360,000 June 1 600,000 July 1 1,500,000 December 1 1,200,000 Additional information is provided as follows: 1, Other debt outstanding: 10-year, 11% bonds, dated December 31, 2012, interest payable annually $4,000,000 6-year, 10% note, dated December 31, 2016, interest payable annually $1,600,000 2. The expenditures on March 1, 2019 included land costs of $150,000. 3. Interest revenue earned in 2019 on funds related to specific borrowing $49,000 Instructions: (a) Determine the amount of interest to be capitalized in 2019 in relation to the construction of the building (b) Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2019