During 2016,Dosekis Co

Multiple Choice

During 2016,Dosekis Co.incurred average accumulated expenditures of $400,000 during construction of assets that qualified for capitalization of interest.The only debt outstanding during 2016 was a $500,000,10%,5-year note payable dated January 1,2013.What is the amount of interest that should be capitalized by Dosekis during 2016?

A) $10,000
B) $40,000
C) $50,000
D) $80,000