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Sever21 [200]
3 years ago
10

Cole Co. began constructing a building for its own use in January 2016. During 2016, Cole incurred interest of $50,000 on specif

ic construction debt, and $20,000 on other borrowings. Interest computed on the weighted-average amount of accumulated expenditures for the building during 2016 was $40,000. What amount of interest should Cole capitalize? Multiple Choice $20,000 $40,000 $50,000 $70,000
Business
1 answer:
il63 [147K]3 years ago
5 0

Answer:

The correct answer is 'Option (b)  

Explanation:    

Cole co. should compare between actual interest incurred on all the debts and the calculated interest on weighted average accumulated expenditure and lower of these two should be capitalized.

Actual interest incurred =$50,000+20,000 = $70,000

Calculated interest = $40,000

Lower of these two to be capitalized for the building during 2011= $40,000

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2 years ago
l economic systems (capitalist, communist, or any other) face similar economic problems. Which of the following questions would
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7 0
3 years ago
A variable annuity is a(n)
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The correct answer is B. non-exempt security under the Securities Act of 1933 because the purchaser bears the investment risk

Explanation:

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It is possible to consider using a variable annuity for those who:

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3 years ago
The company expects an annual need for 5,000 switches. If the company makes the product, it will have to utilize factory space c
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