> > 10. During 2008, Gannon Co. incurred average accumulated expenditures of $400,000 during construction of assets that qualified for capitalization of interest.

10. During 2008, Gannon Co. incurred average accumulated expenditures of $400,000 during construction of assets that qualified for capitalization of interest.

The only debt outstanding during 2008 was a $500,000, 10%, 5-year n...

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10. During 2008, Gannon Co. incurred average accumulated expenditures of $400,000 during construction of assets that qualified for capitalization of interest.

The only debt outstanding during 2008 was a $500,000, 10%, 5-year note payable dated January 1, 2006.
What is the amount of interest that should be capitalized by Gannon during 2008?
A) $0
B) $10,000
C) $40,000
D) $50,000

Answer

C. 40,000 is the correct answer.
Hope I helped.
good luck

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Virtual Teaching Assistant: Colleen R.
Question Level: Basic
Karma: Free
Upload Date: 5/31/2017

This 60 words question was answered by Colleen R. on StudySoup on 5/31/2017. The question contains content related to Business Since its upload, it has received 108 views.

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