What is the amount of interest that should be capitalized, Accounting Basics

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What is the amount of interest that should be capitalized

During 2012, Kimmel Co. incurred average accumulated expenditures of $600,000 during construction of assets that qualified for capitalization of interest. The only debt outstanding during 2012 was a $750,000, 10%, 5-year note payable dated January 1, 2010. What is the amount of interest that should be capitalized by Kimmel during 2012?

a. $0.

b. $15,000.

c. $60,000.

d. $75,000.

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Accounting Basics: What is the amount of interest that should be capitalized

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Accounting Basics: What is the amount of interest that should be capitalized

Reference No:- TGS0699373

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