Question: On December 3 1 , 2 0 2 4 , Lakspur inc. borrowed $ 1 , 2 9 0 , 0 0 0 at 1

On December 31,2024, Lakspur inc. borrowed $1,290,000 at 13% payable annually to finance the construction of a new building. In 2025, the company made the following expenditures related to this building: june 1, $516,000; july 1, $774,000; september 1, $1,548,000; December 1, $774,000. The building was completed in April 2026. Additional information is provided as follows:
1. Other debt outstanding
10-year, 11% bond, dated december 31,2018, interest payable annually $12,900,000
15-year, 13% note, dated december 31,2012, interest payable annually $3,225,000
2. Interest revenue earned in 2025 $7,740
Prepare the journal entry to record the capitlizafion of interest and the recognition of interest expense, if any, at december 31,2025.

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