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During 2016, Bell Corporation constructed assets costing 750,000. The weighted average accumulated expenditures on these...

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Accounting

During 2016, Bell Corporation constructed assets costing 750,000. The weighted average accumulated expenditures on these assets during 2016 was 450,000. To help pay for construction, 330,000 was borrowed at 10% on January 1, 2016 and funds not needed for construction were temporarily invested in short-term securities, earnings 7,000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the years was a 375,000 10 year, 9% bond payable dated January 1, 2010. What is the amount of interest that should be capitalized by Bell during 2016?

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