Jazz company started construction on a building on January 1 of this year and completed construction on December 31 of the same year. Jazz had only two interest notes outstanding during the year, and both of these notes were outstanding for all 12 months of the year. The following information is available: What amount of interest should Jazz capitalize for the current year?
Average accumulated expenditures ..................... $250,000
Ending balance in construction in progress
before capitalization of interest .................. 360,000
6 percent note incurred specifically for the project . 150,000
9 percent long-term note ............................. 500,000
A $15,000
B $18,000
C $22,500
d $27,900