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What is the amount of interest that should be capitalized

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Question - During 2017, Bonita Industries constructed assets costing $3960000. The weighted-average accumulated expenditures on these assets during 2017 was $2370000. To help pay for construction, $1770000 was borrowed at 9% on January 1, 2017, and funds not needed for construction were temporarily invested in short-term securities, yielding $32000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the year was a $1910000, 10-year, 8% note payable dated January 1, 2011. What is the amount of interest that should be capitalized by Bonita during 2017?

$213300.

$106650.

$207300.

$351300.

Reference no: EM132170071

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