Harbor Co. began constructing a building for its own use in January of the current year. During the current year, Harbor incurred interest of $45,000 on specific construction debt, and $50,000 on other borrowings. Interest computed on the weighted-average amount of accumulated expenditures for the building during the current year was $90,000. What amount of interest cost should Harbor capitalize?

Select one:

a.

$45,000

b.

$95,000

c.

$90,000

d.

$185,000

e.

$135,000