During the current calendar year, ABC Company started constructing a building to use as a warehouse. The project was completed and ready for inventory storage at the end of the current year. ABC Company incurred the following expenses related to the construction: January 1, $150,000; July 1, $500,000; and December 31, $750,000. ABC Company had a $1,500,000, 9% note payable outstanding during the year to fund this project among other things. What amount of interest should ABC Company capitalize for the year?

a.$135,000

b.$36,000

c.$126,000

d.$58,500