Problem 1- Interest During Construction (20 Points) Alaia Belize began construction of a new hotel on December 1, 2020. On this date, the company purchased a parcel of land for $260,000 in cash. In addition, it paid $3,000 in surveying costs and $7,000 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $9,000, with $2,000 being received from the sale of materials. Architectural plans were also formalized on December 1,2020, when the architect was paid $62,000. The necessary building permits costing $16,000 were obtained from the city and paid for on December 1 as well. The excavation work began during the first week in December with payments made to the contractor as follows: The building was completed on July 1, 2021. To finance construction of this hotel, Alaia Belize borrowed $2,500,000 from the bank on December 1, 2020. Alaia Belize had no other borrowings. The $2,500,000 was a 10 -year loan bearing interest at 6%. Instructions Compute the balance in each of the following accounts at December 31, 2020, and December 31 , 2021. (Round amounts to the nearest dollar.) (a) Land. (6 Points) (b) Buildings. (10 Points) (c) Interest Expense. (4 Points)