On January 1, 2020, ABC, Inc. broke ground on a building to manufacture its products. At the end of 2020 the building had not been finished. During the year, the company made the following payments to the contractor: Costs (disbursements or expenditures) of the construction: January 2, 2020 $400,000 June 30, 2020 $825,000 The following information on outstanding loans was obtained from the company's accounting records:

	Date of issue	Principal	Interest rate
Specific loan for construction	january 1, 2020	500,000	12%

Other debts NOT directly related to construction:

	date issue	principal	interest rate
Document to be paid	march 1, 2019	600,000	14%
bonds to be paid	july 1, 2019	1,000,000	10%

What is the total weighted-average accumulated expenditures of construction for 2020?

Select one:

a $779,167

b. $1,225,000

c. $812,500

d. $881,250

Ignore the computation in the previous question, and assume that the total average construction expenditure for 2020 is $900,000. How much is the total interest that will be capitalized in the building or construction in progress account?

Select one:

a $60,000

b. $106,000

c. $63,000

d. $184,000