Knight Corporation reports the following financial statement information for the years ending December 31, 2015, 2016, and 2017.

2017 2016 2015

Net sales $ 236,000 $195,000 $ 120,000

Cost of goods sold 188,000 150,000 85,000

Gross profit $ 50,000 $ 45,000 $ 35,000

Operating expenses 22,000 18,000 11,000

EBIT $ 28,000 $ 27,000 $ 24,000

Interest expense 15,000 13,500 12,100

Pretax income $ 13,000 $ 13,500 $ 11,900

Income tax 3,900 4,050 3,570

Net income $ 9,100 $ 9,450 $ 8,330

The notes to Knight Corporation's financial statements included the following sentences. "Interest capitalized during 2017, 2016, and 2015 was $1,500, $1,250, and $4,250, respectively. The capitalized interest increased Knight Corporation's depreciation expense for 2017, 2016, and 2015 by $325, $210, and $45, respectively.

What are Knight Corporation's interest coverage ratios for 2017 with and without adjusting for capitalized interest?

	a.	Interest coverage without adjusting for capitalized interest = 1.87; after adjusting = 1.76.
	b.	Interest coverage without adjusting for capitalized interest = 1.87; after adjusting = 1.72.
	c.	Interest coverage without adjusting for capitalized interest = 1.95; after adjusting = 1.84.
	d.	Interest coverage without adjusting for capitalized interest = 1.84; after adjusting = 2.00.