On December 31, 2020, Dunc Surf., a public company, borrowed $3 million at 12% 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, $507,000; June 1, $618,000; July 1, $1.5 million (of which $415,000 was for the roof); December 1, $1.5 million (of which $720,000 was for the building HVAC).

Additional information follows:

1. Other debt outstanding:

$4-million, 10-year, 12% bond, dated December 31, 2013, with interest payable annually

$1.7-million, six-year, 9% note, dated December 31, 2017, with interest payable annually.

2.The March 1, 2021 expenditure included land costs of $141,000.

3.Interest revenue earned in 2021 on the unused idle construction loan amounted to $50,500.

Q:

Determine the interest amount that could be capitalized in 2021 in relation to the building construction.

Interest amount to be capitalized $:

Q:

Prepare the journal entry to record the capitalization of borrowing costs and the recognition of interest expense, if any, at December 31, 2020 (IF NO ENTRY REQUIRED PUT "NO ENTRY")