### Interest for the third year capitalization

Assignment Help Accounting Basics
##### Reference no: EM13151750

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

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