Franklin Company obtained a $145,000 line of credit from State Bank on January 1, Year 1. The company agreed to accept a variable interest rate that was set at 1% above the bank's prime lending rate. The bank's prime rate of interest and the amounts borrowed or repaid during the first three months of Year 1 are shown in the following table. Assume that Franklin borrows or repays on the first day of each month.

	Amount Borrowed or (Repaid)			Prime Rate for the Month
1-Jan	$	46,000			4.0	%
1-Feb		(18,000	)		4.5	%
1-Mar		46,000			5.0	%

What is the amount of interest expense recognized in March? (Do not round your intermediate calculations. Round your final answer to the nearest whole number.)

Multiple Choice

• $308

• $370

• $278

• $247