On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2019. Expenditures on the project were as follows:

January 1, 2018	$	300,000
September 1, 2018	$	450,000
December 31, 2018	$	450,000
March 31, 2019	$	450,000

Dreamworld had the following debt obligations outstanding during both years:

Construction loan, 10% $500,000

Long-term note, 12% $2,500,000

Required: What would Dreamworld's capitalized interest be in 2019 (assuming interest from 2018 does not compound in 2019)?

		$45,000
		$161,000
		$135,000
		$125,000
		$113,000