On October $1,2025,$ Lily Inc. engaged a local construction company to construct a warehouse. Lily determines that it can capitalize $$44,000$ of interest related to the construction of the warehouse, and it has real interest expense of $$96,000$ for the year. In its December $31,2025$ journal entry to update interest incurred, how much interest expense will Lily debit?

$0$

$52,000$

$96,000$

$44,000$