E10-8 (Capitalization of Interest) On December31 2011 Hurston Inc. borrowed $300

E10-8 (Capitalization of Interest) On December31 2011 Hurston Inc. borrowed $3000000 at 12% payable annuallyto finance the construction of a new building. In 2012 the companymade the following expenditures related to this building: March 1$360000; June 1 $600000; July 1 $1500000; December 1$1200000. Additional information is provided as follows.