On January 1, 2016, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2017. Expenditures on the project were as follows:

January 1, 2016	$316,000
September 1, 2016	$462,000
December 31, 2016	$462,000
March 31, 2017	$462,000
September 30, 2017	$316,000

Dreamworld had $5,400,000 in 14% bonds outstanding through both years.

Dreamworld's capitalized interest in 2016 was:

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Data related to the inventories of Alpine Ski Equipment and Supplies is presented below:

	Skis	Boots	Apparel	Supplies
Selling price	$172,000	$165,000	$109,000	$73,000
Cost	148,000	141,000	76,300	51,100
Replacement cost	110,000	125,000	111,000	47,100
Sales commission	10%	10%	10%	10%

In applying the lower of cost and net realizable value rule, the inventory of apparel would be valued at: