During 2019, Clark Company manufactured equipment for its own use at a total cost of...
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During 2019, Clark Company manufactured equipment for its own use at a total cost of $2,400,000 (1,200,000 on April 1 and 1,200,000 on October 1). 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, 2019, replaced with a long-term loan. Throughout 2019, Clark Company had additional debt of $1,000,000 with an interest rate of 7%. If Clark Company capitalizes the interest based on weighted-average interest method, how much will Clark report as interest capitalized in 2019? A. $84,000 B. $72,000 C. $76,800 D. $70,000
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