The Third Year of a Construction Project Began with a $30,000

Multiple Choice

The third year of a construction project began with a $30,000 balance in Construction in Progress.Included in that figure is $6,000 of interest capitalized in the first two years.Construction expenditures during the third year were $80,000 which were incurred evenly throughout the entire year.The company has had over $300,000 in interest-bearing debt outstanding the third year,at a weighted average rate of 9 percent.How much interest for the third year is capitalized?

A) $3,600
B) $6,300
C) $9,360
D) $9,900