### Interest that should be capitalized

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##### Reference no: EM1334271

Nguyen Corp constructed assets costing \$600 000. The Weighted average accumulated expenditures on these assets during the year was \$400 000. To help pay for construction, \$320 000 was borrowed at 10% at the beginning of year. Some funds were not needed for construction so thus were temporarily invested in short term securities which resulted in \$4500 interest revenue. Other than the construction funds borrowed, the only other debt outstanding for the year was a \$250 000, 10 year, 9% note payable dated January 1991.

What is the amount of interest that should be capitalized by Nguyen Corp during the year of 2005?

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