Sonora company borrowed $400,000 on a 10 percent note payable to finance a new warehouse Sonora is constructing for its own use. The only other debt on Sonoras books is a $600,000 12 percent mortgage payable on an office building. At the end of the current year, average accumulated expenditures on the new warehouse totaled $475,000. Sonora should capitalize interest for the current year in the amount of?

A) $49,000

B) $47,500

C) $52,250

D) $40,000