ANSWER ALL PLEASE :

On December $31,2020,$ Jumble Inc. borrowed $$1,000,000$ at $10\%$

payable annually

to finance the construction of a new building. In $2021,$ the company

made the following expenditures related to this building: March $1,$

$$1,400,000$; July $31,$ $$800,000$; October $1,$ $$1,400,000$; December $1,$

$$600,000.$ The building was completed in April $2022.$

Additional information is provided as follows.

$1.$Other debt outstanding

$10-$year, $8\%$ bond, dated December $31,2015,$ interest payable

annually $$500,000$

$15-$year, $10\%$ note, dated December $31,2010,$ interest payable

annually $$1,500,000$

$2.$Interest revenue earned in $2021$$$6,000$

Instructions

$($a$)$ Determine the amount of interest to be capitalized in $2021$ in

relation to the construction of the building. Show how you determined

this amount.

$($b$)$ Prepare the journal entry to record the capitalization of interest

and the recognition of interest expense, if any, at December $31,2021.$