On March 1, Patricia Co. began construction of a small building. The building was completed and occupied on July 1. To help pay for construction $215,000 was borrowed on March 1 on a 12%, three-year note payable. The only other debt outstanding during the year was a $2,000,000, 10% note issued two years ago. Assume the weighted-average accumulated expenditures for the construction project are $389,750. The amount of avoidable interest is: a. $43,275 b. $ 38,975 c. $ 221,500 d. $21500