On December 31, 2013, Main Inc. borrowed $3,000,000 at 12% payable annually to finance the construction of a new building. In 2014, the company made the following expenditures related to this building: March 1, $360,000; June 1, $600,000; July 1, $1,500,000; December 1, $1,500,000.
The building was completed in February 2015. Additional information is provided as follows.
1. Other debt outstanding
10-year, 13% bond, December 31, 2007, interest payable annually .... $4,000,000
6-year, 10% note, dated December 31, 2011, interest payable annually . $1,600,000
2. March 1, 2014, expenditure included land costs of $150,000
3. Interest revenue earned in 2014 $49,000

Instructions
(a) Determine the amount of interest to be capitalized in 2014 in relation to the construction of the building.
(b) Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2014.