On December 31, 2020, Cheyenne Inc., a public company, borrowed $3 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, $519,000; June 1, $630,000; July 1, $1.5 million (of which $412,000 was for the roof); December 1, $1.5 million (of which $728,000 was for the building HVAC). Additional information follows: 1. Other debt outstanding: $5-million, 10-year, 12% bond, dated December 31, 2013, with interest payable annually $1.5-million, six-year, 10% note, dated December 31, 2017, with interest payable annually 2. The March 1, 2021 expenditure included land costs of $147,000. 3. Interest revenue earned in 2021 on the unused idle construction loan amounted to $52,400. PART 2 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 O for the amounts. Do not round intermediate calculations. Round capitalization rate to 2 decimal places, e.g. 52.75% and final answers to 0 decimal places, e.g. 5,275.)