Waterway Industries is constructing a building. Construction began on January 1 and was completed on December 31 . Expenditures were $6400000 on March 1, $5320000 on June 1, and $8650000 on December 31. Waterway Industries borrowed $3250000 on January 1 on a 5 -year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3 -year, \$6400000 note payable and an 11%,4-year, $12550000 note payable. What amount of interest should be charged to expense? $2020500 $1077601 $7867601 $1467601