Answer:
A. $125
(Supplies + Electricity)
B. $10,300
(Salary lost + Rent amount lost)
C. $10,425
(Add them together)
Answer:
FASB ASC 835-20-15-8
Explanation:
This section explicitly states that in order for interests to qualify for interest capitalization, the assets purchased through the loan must be getting ready for its intended use. E.g. if you want to capitalize the interests on the land, you must carry out activities necessary to prepare it for its intended use. Or if you purchase a machinery, you must be installing it in order to get it ready to produce.
<h3>Hello there!</h3>
Your question asks what an opportunity cost of an action is.
<h3>Answer: D). is a subjective valuation that can be determined only by the individual who chooses the action.</h3>
The reason why answer choice "D). is a subjective valuation that can be determined only by the individual who chooses the action" is correct because an opportunity cost of an action is not the same for everyone.
An opportunity cost of an action is subjective, meaning that the action can be determined by someone's opinion, feelings, etc. Everyone thinks differently, therefore making everyone's opportunity cost of action different.
A opportunity cost of an action also is determined by the individual themselves, not anyone else. That's why the action is subjective, due to the fact that the decision on the action is determined by the individual personal opinions and feelings.
<h3>I hope this helps!</h3><h3>Best regards,</h3><h3>MasterInvestor</h3>
