Problem 27-15 (IAA) On June 1, 2019, Circus Company began construction new manufacturing plant. The plant was complete October 31, 2020. Expenditures on the project On were: 5,000,000 3,000,000 3,000,000 2,000,000 2,000,000 500,000 1, 2019 October 1, 2019 February 1, 2020 1, 2020 July April Setember 1, 2020 October 1, 2020 On July 1, 2019, the entity obtained a P7,000,000 construction loan with a 6% interest rate. The loan wes outstanding through the end of October 2020. long-term note The only other interest-bearing debt was a for P10,000,000 with an interest rate of 8%. This note was outstanding during 2019 and 2020. The fiscal year-end is December 31 1. What amount of interest should be capitalized in 2019? 210,000 b. 195,000 c. 390,000 d. 420,000 a. 2. What amount of interest should be capitalized in 2020? a. 1,000,000 b. 1,350,000 700,000 c. d. 733,000 3. What is the interest expense for 2020? a. 1,200,000 b. 1,270,000 887,000 d. C. . 537,000