Exercise 10-8 On December 31, 2016. Carla Inc, borrowed $3.180,000 at 12% payable annual y to finance the construct on of a new building. n 2017 the corn any made the follow ng expenditures reated to this build ng March 1 5381 600:June $636,000; July 1, $1,590,000; December 1, s1,590,000. The bullding was completed in February 2018. Additional Information is provided as follows. 1. Other debt outstanding 10-year, 13% bond, December 31, 2010, interest payable annually 6-year, 10% note, dated December 31, 2014, interest payable annually $1,696,000 2. March 1, 2017, expenditure included land costs of $159,000 3 Interest revenue earned in 2017 $51,940 Determine the amount of interest to be capitalized in 2017 in relation to the construction of the building The amount of Interest LIST OF ACCOUNTS LINK TO TEXT VIDEOI SIMILAR EXERCISE Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry Is required, select "No Entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit December 31, 2017