Jugular Company started construction on a building on January 1 of the current year and completed construction on December 31 of the same year.

The entity had only two interest-bearing notes outstanding during the year, and both of these notes were outstanding for all 12 months of the year.

The following information is available:

Average accumulated expenditures 2,500,000

Ending balance in construction in progress before

capitalization of interest 3,600,000

6% note incurred specifically for the project 1,500,000

9% long-term note 5,000,000

What is the total cost of the building?

a. 3,780,000

b. 3,680,000

c. 3,750,000

d. 3,825,000