Waller Corporation has an $18 million revolving credit agreement with its bank at prime plus 3%, based on a calendar year.  It borrowed $3 million on June 1, when it accessed the agreement for the first time.  Prime is 8.75% and the bank's commitment fee is 1/4% annually.  What bank charges will Waller incur for the month of June?

A) $262,500
B) $3,120
C) $32,496
D) $29,375

The interest rate on the loan is prime plus 3%, which comes to 11.75% (8.75% + 3%). For the month of June, the interest expense on the loan will be:
$3,000,000 x 11.75% x 1/12 = $29,375

In addition, the commitment fee for the month of June will be:
$3,000,000 x 1/4% x 1/12 = $7,500

Therefore, the total bank charges for the month of June will be:
$29,375 + $7,500 = $36,875

However, since the revolving credit agreement is based on a calendar year, we need to prorate the commitment fee for the month of June. There are 214 days remaining in the year (June 1 to December 31), so the commitment fee for June will be:
$3,000,000 x 1/4% x (30/214) = $4,379

Therefore, the total bank charges for the month of June will be:
$29,375 + $4,379 = $32,754

The closest answer choice to this amount is C, $32,496.