Use the following information to answer the next two questions:

On January 1, 2020, ABC, Inc. broke ground on a building to manufacture its products. At the end of 2020 the building had not been finished. During the year, the company made the following payments to the contractor:

Costs (disbursements or expenditures) of the construction:

January 2, 2020 $400,000

June 30, 2020 $825,000

The following information on outstanding loans was obtained from the company's accounting records:

	Date of issue	Major or principal	Interest rate
Specific loan for construction	January 1, 2020	$500,000	12%
Other debts NOT directly related to construction:
	Date of issue	Major or principal	Interest rate
Document Payable	March 1, 2019	$600,000	14%
Bonds Payable	July 1, 2019	$1,000,000	10%

36. What is the total weighted-average accumulated expenditures of construction for 2020?

Select one:

a. $1,225,000

b. $779,167

c. $881,250

d. $812,500

37. Ignore the computation in the previous question, and assume that the total average construction expenditure for 2020 is $900,000. How much is the total interest that will be capitalized in the building or construction in progress account?

Select one:

to. $60,000

b. $184,000

c. $106,000

d. $63,000