On December 31, 2019, Skysong Inc. borrowed $3,600,000 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, $432,000; June 1, $720,000; July 1, $1,800,000; December 1, $1,800,000. 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		$4,800,000
		6-year, 11% note, dated December 31, 2017, interest payable annually		$1,920,000
2.		March 1, 2020, expenditure included land costs of $180,000
3.		Interest revenue earned in 2020		$58,800

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

The amount of interest

$

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