On January 1, 2021, Firm ABC began constructing a new warehouse. The warehouse was finished and ready for use on December 31, 2021. Expenditures on the project were as follows:

Date of Expenditure	Expenditure Amount
January 1, 2021	$ 205,000
October 1, 2021	$ 360,000

To finance the project, Firm ABC took out a $350,000 construction loan with a stated interest rate of 7%. The construction loan was outstanding throughout the construction period. In addition, Firm ABC had $50,000 in bonds payable with a stated interest rate of 4% outstanding during 2021.

The amount of interest capitalized for 2021 was:

	a.	$22,855
	b.	$24,500
	c.	$19,705
	d.	$20,650