On December 31, 2019, Sandhill Inc. borrowed $3,300,000 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, $396,000; June 1, $660,000; July 1, $1,650,000; December 1, $1,650,000. 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 6-year, 11% note, dated December 31, 2017, interest payable annually March 1, 2020, expenditure included land costs of $165,000 Interest revenue earned in 2020 $4,400,000 $1,760,000 2. 3. $53,900 Your answer is correct. Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building. The amount of interest $ 218,075 e Textbook and Media List of Accounts Your answer is partially correct. 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 for the amounts.) ate Account Titles and Explanation Debit Credit ir 31, 2020 Buildings 2,18,075 Interest Expense 10,20,525 Cash 12.38,600