Response to the following problem:
Dicorte Brothers manufactures conveyor belts. Early in January 20X7, Dicorte constructed its own building with borrowed money. The 6% loan was for $900,000. During the year, Dicorte spent the loan amount on construction of the building. At yearend, Dicorte paid the interest for one year.
Required:
1. How much should Dicorte record as the cost of the building in 20X7?
2. Record all of Dicorte's transactions during 20X7.