On June 1, 2015, the Crocus Company began construction of a new manufacturing plant. The plant was completed on October 31, 2016. Expenditures on the project were as follows ($ in millions):

July 1, 2015 54
October 1, 2015 22
February 1, 2016 30
April 1, 2016 21
September 1, 2016 20
October 1, 2016 6

On July 1, 2015, Crocus obtained a $70 million construction loan with a 6% interest rate. The loan was outstanding through the end of October, 2016. The company’s only other interest-bearing debt was a long-term note for $100 million with an interest rate of 8%. This note was outstanding during all of 2015 and 2016. The company’s fiscal year-end is December 31.

What is the amount of interest that Crocus should capitalize in 2016, using the specific interest method?
$1.90 million.
$1.95 million.
$2.96 million.
None of these answer choices are correct.