On January 1, 2018, Star Inc. began construction of a new warehouse for its own use. The warehouse was completed in 2019. Expenditures on the project in 2018 were as follows:

January 1, 2018 $310,000

March 31, 2018 $600,000

September 1, 2018 $720,000

Star borrowed $600,000 on a construction loan at 6% interest rate on January 1, 2018. The loan was outstanding throughout the construction period. During 2018, the company had $300,000 in 4% bonds and $700,000 in 8% notes outstanding. Stars capitalized interest in 2018 using the specific interest method was:

A. $60,000.

B. $63,200.

C. $68,000.

D. $104,000.