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During 2016, Belardo Corporation constructed and manufactured certain assets, and incurred the following interest costs in connection with those activities:
Interest costs incurred on warehouse constructed for Belardo's own use: 20,000
Special-order machine for sale to unrelated customer: 9,000
Inventories routinely manufactured, produced on a repetitive basis: 7,000
Problem 1: All of these assets required an extended period of time for completion. Assuming the effect of interest capitalization is material, what is the total amount of interest cost to be capitalized?
a. 0
b. 20,000
c. 29,000
d. 36,000
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