A firm is capitalizing interest for the ronstruction of an office building. The amount of actual interest is $125,000 and the amount of avoidable interest is $137,000. The specific construction debt is a 12%, 3-year, $350,000 note. The firm also has other debt of an 8%, $125,000 note. Which of the following statements is true? Select one: a. The firm must capitalize actual interest. b. The firm must capitalize the interest expense of other debt. c. The firm must capitalize avoidable interest. d. The firm must capitalize both actual and avoidable interest O e. The firm must capitalize the interest expense of the specific construction debt