During 2012, Bass Corporation constructed assets costing $2,000.000. The weighted average accumulated expenditures of these assets during 2012 was $600,000. To help pay for construction, $880,000 was borrowed at 10%. On January 01. 2012, and funds not needed for construction were temporarily invested to short-term securities, yielding $18,000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the year was a $1.000,000. 10-year, 9% note payable dated January 01, 2006. What is the amount that should be capitalized by Bass during 2012?
a. $120,000.
b. $60,000.
c. $116,800.
d. $188,800.