Mousa Company is constructing a building. Construction began on January 1 and was completed on December 31. Mousa Company borrowed $1,200,000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had two outstanding debts: a 10%, 3-year, $2,400,000 note payable and an 11%, 4-year, $4,500,000 note payable. What is the actual interest paid by Mousa Company?

a.

$879,000

b.

$735,000

c.

All other choices are incorrect

d.

$891,000