On January 1, 2013, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2014. Expenditures on the project were as follows:

January 1,2013	$341,000
September 1,2013	$507,000
December 31,2013	$507,000
March 31,2014	$507,000
September 30,2014	$341,000

Dreamworld had $6,900,000 in 12% bonds outstanding through both years.

The average accumulated expenditures for 2014 by the end of the construction period was:

a)	$1,754,200.
b)	$2,203,000.