The following information is from Bowin Inc. for a long-term construction project that is expected to be completed in January of next year. The construction project is for a building intended for the companys own use. The capital expenditure on January 1 of the current year is for the purchase of land for the building site. No new construction loans were opened for the project during the year. All debt was outstanding for the full year.

Capital Expenditures for Current Year
Date	Actual Expenditures
Jan. 1	$60,000
Mar. 31	1,800,000
June 30	3,600,000
Nov. 30	1,800,000

Outstanding Debt in Current Year
Debt	Debt Amount	Interest Rate
Note payable	$2,000,000	8%
Note payable	1,600,000	8%
Bond payable	4,000,000	10%
Note payable	1,000,000	9%

• Compute Interest to Capitalize and Expense
• Journal Entry in Year 1
• Journal Entries in Year 2

a. Compute (1) interest to be capitalized and (2) interest to be expensed, during the year.