On January 1, 2021, the Mills Conveying Equipment Company began construction of a building to be used as its office headquarters. The building was completed on June 30, 2022. Expenditures on the project, mainly payments to subcontractors, were as follows: January 1, 2021 March 31, 2021 September 30, 2021 Accumulated expenditures at December 31, 2021 $500,000 400,000 600,000 $ 1,500,000 (before interest capitalization) January 31, 2022 April 30, 2022 600,000 300,000 On January 1, 2021, the company obtained a $1 million construction loan with a 10% interest rate. The loan was outstanding during the entire construction period. The company's other interest-bearing debt included two long-term notes of $2,000,000 and $4,000,000 with interest rates of 6% and 12%, respectively. Both notes were outstanding during the entire construction period. Suppose that expenditures are not incurred evenly throughout the period. What's the amount of interest capitalized for 2022? $109,750 $98,800 $105,000 $95,000