Boron Co. is a calendar-year firm. On January 1, Year 1, it borrowed $8 million at 15% to finance construction of a new building. Payments on the loan are to commence the month following completion of the project. During Year 1, expenditures for the partially completed building were $4 million. These expenditures were incurred evenly throughout the year. Boron had invested the unexpended portion of the loan in a money market fund that generated interest revenue of $300,000 during the year. What should be the amount of capitalized interest disclosed on Borons Year 1 financial statement

A.

$0

B.

$200,000

C.

$300,000

D.

$1,200,000