Song Company Started Construction on a Building on January 1

Multiple Choice

Song Company started construction on a building on January 1 of this year and completed construction on December 31 of the same year.Song 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 Song capitalize for the current year?

A) $15,000
B) $18,000
C) $22,500
D) $27,900