Zhang Ltd. is constructing a buildingConstruction began on February I and was completed on December 31. Expenditures were $1,800,000 o March 1,$1,200,000 on June 1 , and 3,000,000 on December 31. Zhang Ltd. had outstanding all year a 10%5-year $4,000,000 note payable and 11%,4 year $3,500,000 note payable. Required: 1. Compute Zhang's average carrying amount for borrowing cost capitalization purposes. 2. Compute the capitalization rate used for borrowing cost capitalization purposes