On January 1, 2016 Basker Research signed a contract to have Bob's Builder's construct a laboratory building at a cost of $20,000,000. It was estimated that it would take four years to complete the project. Also on January 1, 2017 to finance the construction cost, Tolvin borrowed $20,000,000 payable in five annual installments of $4,000,000 plus interest at the rate of 7%. During 2017, Tolvin made the following construction- related expenditures

3/1. 600,000

7/1. 700,000

11/1. 900,000

What amount should Tolvin report as capitalized interest at December 31, 2017?

a. 70,000

b. 84,000

c. 152,000

d. 1,400,000