During 2016, Dosekis Co. incurred average accumulated expenditures of $400,000 during construction of assets that qualified for capitalization of interest. The only debt outstanding during 2016 was a $500,000, 10%, 5-year note payable dated January 1, 2013. What is the amount of interest that should be capitalized by Dosekis during 2016?

A) $10,000

B) $40,000

C) $50,000

D) $80,000