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	$322,000
September 1, 2016	$474,000
December 31, 2016	$474,000
March 31, 2017	$474,000
September 30, 2017	$322,000

Dreamworld had $5,800,000 in 12% bonds outstanding through both years.

Dreamworld's capitalized interest in 2016 was:

Multiple Choice

• $38,640.

• $77,280.

• $57,600.

• $67,260.