On December 31, 2016, Pharoah Inc. borrowed $3,120,000 at 12% payable annually to finance the construction of a new building was completed in February 2018. Additional information is provided as follows. In 2017, the company made the following expenditures related to this building: March 1, $374,400; June 1, $624,000; July 1, $1,560,000; December 1, $1,560,000. The building 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. $4,160,000 $1,664,000 2. March 1, 2017, expenditure included land costs of $156,000 3. Interest revenue earned in 2017 $50,960 Determine the amount of interest to be capitalized n 2017 in relation to the construction of the building. The amount of interest SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO: 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 titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit December 31, 2017