The Libby Oil Corporation incurs unproved property $($Lease A$)$ costs of $$60,000$

on April $1,2018.$ An $8\%$ loan is obtained on April $1,2018$ for $$500,000$ to finance

a drilling program. Libby started a well on Lease A on June $1,2018,$ and the

well is still in progress at $\frac{12}{31}\frac{?}{18}.$ Drilling costs to $\frac{12}{31}\frac{?}{18}$ are $$300,000.$ The

company excludes all possible costs from the cost pool.

REQUIRED: Compute the interest capitalization amount and record the interest.