On December 31, 2020, Bridgeport Inc., a public company, borrowed $4 million at 11% payable annually to finance the construction of a new building. In 2021, the company made the following expenditures related to this building structure (unless otherwise noted): March 1, $494,000: June 1, $594,000; July 1, $1.5 million (of which $444,000 was for the roof); December 1, $1.5 million (of which $685,000 was for the building HVAC). Additional information follows: 1. Other debt outstanding: $3-million, 10-year, 12% bond, dated December 31, 2013, with interest payable annually $1.4-million, six-year, 10% note, dated December 31, 2017, with interest payable annually 2. The March 1, 2020 expenditure included land costs of $140,000. 3. Interest revenue earned in 2020 on the unused idle construction loan amounted to $46,800. Your Answer Correct Answer Determine the interest amount that could be capitalized in 2020 in relation to the building construction. (Do not round intermediate calculations. Round capitalization rate and final answer to O decimal places, e.g. 5,275.) Interest amount to be capitalized $ 120,015 (b) Prepare the journal entry to record the capitalization of borrowing costs and the recognition of interest expense, if any, at December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Do not round intermediate calculations. Round capitalization rate to 2 decimal places, eg. 52.75% and final answers to 0 decimal places, eg. 5,275.) Account Titles and Explanation Debit Credit Cash Account Payable Buildings-Structure No Entry Buildings Interest Income Account Receivable Interest Expense Buildings-Roof Buildings-HVAC