On January 1, 2011, the Montgomery company agreed to purchase a building by making six payments. The first three are to be $25,000 each, and will be paid on December 31, 2011, 2012, and 2013. The last three are to be $40,000 each and will be paid on December 31, 2014, 2015, and 2016. Montgomery borrowed other money at a 8% annual rate. (Use Table 2 and Table 4) Required: (1) At what amount should Montgomery record the note payable and corresponding cost of the building on January 1, 2011? (Round "PV Factor" to 5 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.) Amount recorded $ (2) How much interest expense on this note will Montgomery recognize in 2011? (Round "PV Factor" to 5 decimal places, intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.) Interest expense in the year 2011 $