Question Two (85 points) On December 31, 2018, Tsang Group borrowed $1,000,000 at 12% payable annually to finance the construction of a new building. In 2019, the company made the following expenditures related to this building: April 1, $360,000; June 1, $600,000; July 1 $1,500,000; and December 31, $1,200,000. Additional information is provided as follows Other debt outstanding 10-year, 11% bond, December 31, 2012, interest payable annually 6-year, 9.25% note, dated December 31, 2016, interest payable annually $4,000,000 $1,600,000 March 1, 2019, expenditure included land costs of $150,000 Interest revenue earned in 2019 on funds related to specific borrowing $40,000 Instructions a. Compute the weighted average expenditure (20 marks) b. Compute the avoidable interest (20 marks) C. Compute the actual interest (20 marks) d. Compute the interest to be capitalized (10 marks) d. Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2019. (15 marks)