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solong [7]
3 years ago
7

During 2011, Clark Company manufactured equipment for its own use at a total cost of $2,400,000. The project required the entire

year to complete and all costs were incurred uniformly throughout the year. At the beginning of the period, Clark was able to borrow $1,500,000 at 6% specifically for the purchase of materials and the manufacture of the equipment. The entire debt, with interest was repaid on December 31, 2011, replaced with a long-term loan. Throughout 2011, Clark Company had additional debt of $1,000,000 with a weighted average interest rate of 7%. If Clark Company capitalizes the maximum amount of interest allowable under GAAP, how much will Clark report as interest expense in 2011?
Business
1 answer:
Zanzabum3 years ago
8 0
Idk idk idk idk idk idk im sorry btw its just for the starting thing
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