On December 31, 2021, Company A borrowed $4,080,000 at 12% payable annually to finance the construction of a new building. In 2022, the company made the following expenditures related to the building:

March 1, $489,000;

June 1, $816,500;

July 1, $2,045,000;

December 1, $2,040,000.

The building was completed in February 2023. Additional information is provided as follows.

1.		Other debt outstanding
		10-year, 13% bond, December 31, 2015, interest payable annually		$5,440,000
		6-year, 10% note, dated December 31, 2019, interest payable annually		$2,176,000
2.		March 1, 2022, expenditure included land costs of $204,000
3.		Interest revenue earned in 2022		$66,640

What is the amount of interest to be capitalized in 2022 in relation to the construction of the building?

• A.

  249,155

• B.

  250,155

• C.

  251,155

• D.

  252,155