Franklin Company obtained a $95,000 line of credit from the State Bank on January 1, Year 1. The company agreed to accept a variable interest rate that was set at 2% 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. Borrowing is shown as a positive amount and repayments are shown as negative amounts indicated by parentheses.

	Amount Borrowed (Repaid)	Prime Rate for the Month
1-January	$ 26,000	4.0%
1-February	(8,000)	4.5%
1-March	26,000	5.0%

Based on this information alone, the amount of interest expense recognized in March would be closest to: (Do not round intermediate calculations. Round your answer to the nearest whole number.)

Multiple Choice

• $257.

• $147.

• $183.

• $165.