On July 1, 2020, the AT&T Inc. began to build a factory. Construction was completed on October 31, 2021. AT&T Inc. incurred the following expenditures ($ in millions):

July 1, 2020	68
October 1, 2020	36
February 1, 2021	44
April 1, 2021	28
September 1, 2021	27
October 1, 2021	13

On July 1, 2020, AT&T Inc. obtained a $105 million construction loan with a 8% interest rate. The loan was outstanding through the end of October, 2021. The company's only other interest-bearing debt was a long-term note for $100 million with an interest rate of 10%. This note was outstanding during all of 2020 and 2021. The company's fiscal year-end is December 31. What is the amount of interest that AT&T Inc. should capitalize in 2020, using the specific interest method?

• None of these answer choices are correct.

• $3.44 million.

• $3.39 million.

• $4.45 million.