During 2017, Gannon Co. incurred weighted average accumulated expenditures of $400,000 during construction of assets...
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Accounting
During 2017, Gannon Co. incurred weighted average accumulated expenditures of $400,000 during construction of assets that qualified for capitalization of interest. Gannon borrowed money specifically for the construction by signing a $500,000, 10%, 5-year note payable dated January 1, 2017. Gannon has another note payable of $200,000 paying 8% interest and maturing at the end of 2022. What is the amount of interest that should be capitalized by Gannon during 2007?
a. $0. b. $10,000. c. $40,000. d. $50,000.
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