On December 31, 2024, Sheffield Inc. borrowed $4,020.000 at 13% payable annually to finance the construction of a new building in 2025, the company made the following expenditures related to this building March 1, $482,400, June 1, $804,000; July 1. $2,010,000, December 1, $2,010,000. The building was completed in February 2026. Additional information is provided as follows 1 Other debt outstanding 10-year. 14% bond, December 31, 2018, interest payable annually $5,360,000 6-year, 11% note, dated December 31, 2022, interest payable annually 2,144,000 2. March 1, 2025, expenditure included land costs of $201,000. 3. Interest revenue of $65,660 earned in 2025. (a) Your answer is correct Determine the amount of interest to be capitalized in 2025 in relation to the construction of the building The amount of interest 265655 eTextbook and Media List of Accounts Attempts: 1 of 3 used (b) Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2025. (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 O for the amounts. List all debit entries before credit entries) Date December 31, 2025 Account Titles and Explanation eTextbook and Media List of Accounts Save for Later Debit Credit Attempts: 0 of 3 used Submit Answer