During 2017, Apple Corporation constructed assets costing $4,000,000. Expenditures were on $2,000,000 on January 1 and $2,000,000 on October 1, 2017. To help pay for construction, $1,760,000 was borrowed at 8% on January 1, 2017, and funds not needed for construction were temporarily invested in short-term securities, yielding $36,000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the year was a $2,000,000, 10-year, 9% note payable dated January 1, 2011. What is the amount of interest that should be capitalized by Apple during 2017?

Group of answer choices

a. $207,400.

b. $240,000.

c. $242,600.

d. $120,000.