During 2020, Glass Corporation constructed assets costing $1,000,000. The weighted- average accumulated expenditures on these assets during 2020 was $600,000. To help pay for construction, $440,000 was borrowed at 10% on January 1, 2020, and funds not needed for construction were temporarily invested in short-term securities, yielding $9,000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the year was a $500,000, 10-year, 9% note payable dated January 1, 2009. The amount of interest that should be capitalized by Glass during 2020 is $

During 2020, Glass Corporation constructed assets costing $1,000,000. The weighted- average accumulated expenditures on these assets during 2020 was $600,000. To help pay for construction, $440,000 was borrowed at 10% on January 1, 2020, and funds not needed for construction were temporarily invested in short-term securities, yielding $9,000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the year was a $500,000, 10-year, 9% note payable dated January 1, 2009. The amount of interest that should be capitalized by Glass during 2020 is $

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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