Essay
During 2014,Brent Industries,Inc.constructed a new manufacturing facility at a cost of $12,000,000.The weighted average accumulated expenditures for 2014 were calculated to be $5,400,000.The company had the following debt outstanding at December 31,2014:
(a)10 percent,five-year note to finance construction of the manufacturing facility,dated January 1,2014,$3,600,000.
(b)12 percent,20-year bonds issued at par on April 30,2013,$8,400,000.
(c)8 percent,six-year note payable,dated March 1,2013,$1,800,000.
Determine the amount of interest to be capitalized by Brent Industries for 2014.
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