Pitchfork, Inc. began a long$-$term construction project for a building intended for the

company's own use in $201.$ Construction began on February $1,201$ when the first

expenditure was made to the contractor and is expected to be complete by the first

quarter of $202.$

For $201,$ Pitchfork determined the WAAE were $$1,400,000.$ The company had the

following outstanding debt in $20$x$1$:

Determine the amount of Interest Expense to be reported on the Income Statement

for the period ended December $31,20$x$1.$

$$750$

$$55,250$

$$50,000$

$$5,250$