these assets during 2020 was $2470000. To help pay for construction, $1710000 was borrowed at 11% on January 1, 2020, and funds not needed for construction were temporarily invested in short-term securities, yielding $32000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the year was a $1900000, 10-year, 10% note payable dated January 1, 2014. What is the amount of interest that should be capitalized by Concord during 2020? O $135850. O $271700.
these assets during 2020 was $2470000. To help pay for construction, $1710000 was borrowed at 11% on January 1, 2020, and funds not needed for construction were temporarily invested in short-term securities, yielding $32000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the year was a $1900000, 10-year, 10% note payable dated January 1, 2014. What is the amount of interest that should be capitalized by Concord during 2020? O $135850. O $271700.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![During 2020, Concord Corporation constructed assets costing $4060000. The weighted-average accumulated expenditures on
these assets during 2020 was $2470000. To help pay for construction, $1710000 was borrowed at 11% on January 1, 2020, and
funds not needed for construction were temporarily invested in short-term securities, yielding $32000 in interest revenue. Other
than the construction funds borrowed, the only other debt outstanding during the year was a $1900000, 10-year, 10% note payable
dated January 1, 2014. What is the amount of interest that should be capitalized by Concord during 2020?
O $135850.
O $271700.
O $264100.
O $406000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F79fe748f-2169-43eb-94ba-fc8e6b626f1b%2F57d87feb-9ec3-49f8-8f97-a63bb476ce9c%2F4zyo15j_processed.png&w=3840&q=75)
Transcribed Image Text:During 2020, Concord Corporation constructed assets costing $4060000. The weighted-average accumulated expenditures on
these assets during 2020 was $2470000. To help pay for construction, $1710000 was borrowed at 11% on January 1, 2020, and
funds not needed for construction were temporarily invested in short-term securities, yielding $32000 in interest revenue. Other
than the construction funds borrowed, the only other debt outstanding during the year was a $1900000, 10-year, 10% note payable
dated January 1, 2014. What is the amount of interest that should be capitalized by Concord during 2020?
O $135850.
O $271700.
O $264100.
O $406000.
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