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 $321,000

September 1, 2016 $471,000

December 31, 2016 $471,000

March 31, 2017 $471,000

September 30, 2017 $321,000

Dreamworld had $5,700,000 in 10% bonds outstanding through both years.

Dreamworld's capitalized interest in 2016 was:

a. $47,800.

b. $64,200.

c. $55,825.

d. $32,100.