Question: 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