A Company Is Constructing an Asset for Its Own Use

Multiple Choice

A company is constructing an asset for its own use. Construction began in 2014. The asset is being financed entirely with a specific new borrowing. Construction expenditures were made in 2014 and 2015 at the end of each quarter. The total amount of interest cost capitalized in 2015 should be determined by applying the interest rate on the specific new borrowing to the

A) total accumulated expenditures for the asset in 2014 and 2015.
B) weighed-average accumulated expenditures for the asset in 2014 and 2015.
C) weighed-average expenditures for the asset in 2015.
D) total expenditures for the asset in 2015.