On November 1, 2018, S Company contracted P Construction Co. to construct a building for $1,400,000 on land costing $100,000 (purchased from the contractor and included in the first payment). S made the following payments to the construction company during 2019. S made total payments of $1,500,000 to the construction company in 2019 and weighted-average accumulated expenditures for 2019 were $920,000.

P Construction completed the building, ready for occupancy, on December 31, 2019. S had the following debt outstanding at December 31, 2019.

Specific Construction Debt
15%, 3-year note to finance purchase of land and construction of the building, dated December 31, 2018, with interest payable annually on December 31	$750,000
Other Debt
10%, 5-year note payable, dated December 31, 2015, with interest payable annually on December 31	$550,000
12%, 10-year bonds issued December 31, 2014, with interest payable annually on December 31	$600,000

The interest cost that S company capitalizes during 2019 is:

Select one:

a. $108,232

b. $120,228

c. $119,272

d. $131,268

e. Cannot be determined from the data given

f. $239,500