2.

Construction began on an office building on March 1. The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land, $1,800,000 was borrowed on March 1, 2017 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2017 was a $750,000, 12%, 6-year note payable dated January 1, 2017. The actual interest cost incurred during 2017 was:

		$252,000
		$225,000
		$126,000
		$210,000