On March 1^st, 20x1, ABC Company began construction on an office building on land they owned. Construction was completed on July 1, 20x1.The weighted-average accumulated expenditures for the construction project are $870,000. To help pay for the construction $720,000 was borrowed on March 1^st on a 9%, 3-year note payable. Other than the construction note, the only other debt outstanding is a 12% interest line of credit with a $300,000 balance all year. Further assume the actual interest = $90,000. The amount of interest cost to be capitalized during 20x1 is

Question 10 options:

a)

$18,000.

b)

$64,800..

c)

$82,800.

d)

$90,000.