On January 1, 2021, Durney Co. began construction of an automated cattle feeder system. The system was finished and ready for use on September 30, 2022. Expenditures on the project were as follows:

January 1, 2021 $200,000

September 1, 2021 $300,000

December 31, 2021 $300,000

March 31, 2022 $300,000

September 30, 2022 $200,000

Durney borrowed $750,000 on a construction loan at 12% interest on January 1, 2021. This loan was outstanding throughout the construction period. The company had $4,500,000 in 9% bonds payable outstanding in 2021 and 2022.

Interest (using the specific interest method) capitalized for 2021 was:

• A.$42,000.
• B.$60,000.
• C.$48,000.
• D.$36,000.