On December 31, 2019, Culver Inc borrowed $4,320,000 at 13 payable annually to finance the construction of a new building In 2020, the company made the following expenditures related to this building March 1, $518,400 June 1, $864,000 July 1, $2,160,000 December 1, $2,160,000 The building was completed in February 2021 Additional information is provided as follows 1 Other debt outstanding 10 year, 14 bond, December 31, 2013, interest payable annually $5,760,000 6 year, 11 note, dated December 31, 2017, interest payable annually $2,304,000 2 March 1, 2020, expenditure included land costs of $216,000 3 Interest revenue earned in 2020 $70,560 Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building The amount of interest $ Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2020 (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 0 for the amounts ) Date Account Titles and Explanation Debit Credit December 31, 2020

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On December 31, 2019, Culver Inc. borrowed $4,320,000 at 13% payable annually to finance the construction of a new building. In 2020, the company made

On December 31, 2019, Culver Inc. borrowed $4,320,000 at 13% payable annually to finance the construction of a new building. In 2020, the company made the following expenditures related to this building: March 1, $518,400; June 1, $864,000; July 1, $2,160,000; December 1, $2,160,000. The building was completed in February 2021. Additional information is provided as follows.

1.	Other debt outstanding
	10-year, 14% bond, December 31, 2013, interest payable annually	$5,760,000
	6-year, 11% note, dated December 31, 2017, interest payable annually	$2,304,000
2.	March 1, 2020, expenditure included land costs of $216,000
3.	Interest revenue earned in 2020	$70,560

Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building.

The amount of interest

Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2020. (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 0 for the amounts.)