Multiple Choice
Cranberry Corp.constructed equipment to manufacture a new line of home products during 2017.The average balance of accumulated expenditures on the equipment during September through December 2017 was $500,000.Construction started on September 1,2017,and was still in progress at the end of 2017.If Cranberry borrowed $500,000 for one year on September 1,2017,to finance the construction,and the interest rate on the construction loan was 6%,how much interest can Cranberry capitalize as part of the equipment cost for 2017?
A) $0
B) $10,000
C) $20,000
D) $30,000
Correct Answer:
Verified
Correct Answer:
Verified
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