During 2017 Apple Corporation built a new warehouse at a cost of $1,500,000 on land costing $100,000. The land was purchased and paid for on Jan. 30, 2017. Construction started on Feb. 1, 2017 and was completed Nov. 30, 2017. Apple made three $500,000 payments to the contractor (Feb. 1, July 1 and Dec. 1). Apple's only outstanding debt during 2017 was a $1,300,000 construction loan (10%) received Jan. 2, 2016. Apple repaid $250,000 principal plus $13,000 interest on Dec. 31, 2017. How much capitalized interest should be included in the cost of the warehouse? Group of answer choices $108,333 $70,833 $62,500 $130,000 $80,000

During 2017 Apple Corporation built a new warehouse at a cost of $1,500,000 on land costing $100,000. The land was purchased and paid for on Jan. 30, 2017. Construction started on Feb. 1, 2017 and was completed Nov. 30, 2017. Apple made three $500,000 payments to the contractor (Feb. 1, July 1 and Dec. 1). Apple's only outstanding debt during 2017 was a $1,300,000 construction loan (10%) received Jan. 2, 2016. Apple repaid $250,000 principal plus $13,000 interest on Dec. 31, 2017. How much capitalized interest should be included in the cost of the warehouse? Group of answer choices $108,333 $70,833 $62,500 $130,000 $80,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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