On December 31, 2014, Tsang Inc. borrowed HK$3,000,000 at 12% payable annually to finance the construction of a new building. In 2015, the company made the following expenditures related to this building: March 1, HK$360,000; June 1, HK$600,000; July 1, HK$1,500,000; December 1, HK$1,200,000. Additional information is provided as follows.

1.	Other debt outstanding
	10-year, 11% bond, December 31, 2008, interest payable annually	HK$4,000,000
	6-year, 10% note, dated December 31, 2012, interest payable annually	HK$1,600,000
2.	March 1, 2015, expenditure included land costs of HK$150,000
3.	Interest revenue earned in 2015 on funds related to specific borrowing	HK$49,000

Determine the amount of interest to be capitalized in 2015 in relation to the construction of the building.

Amount of interest to be capitalized

HK$

Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
December 31, 2015