Interest Capitalization: Interest capitalization refers to the interest amount that is added to the cost of the long-term asset. Such interest capitalization amount includes the interest amount of the debt which was financed for acquiring the asset. To Calculate: The amount of interest capitalized for the year 2016, using the specific interest method.

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Chapter 10, Problem 10.26E

To determine

Interest Capitalization:

Interest capitalization refers to the interest amount that is added to the cost of the long-term asset. Such interest capitalization amount includes the interest amount of the debt which was financed for acquiring the asset.

To Calculate: The amount of interest capitalized for the year 2016, using the specific interest method.

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