During 2017, Atlanta Corporation constructed assets costing $4,000,000. The weighted-average accumulated expenditures on these assets during 2017 was $2,400,000. To help pay for construction, $1,760,000 was borrowed at 10% on January 1, 2017, and funds not needed for construction were temporarily invested in short-term securities, yielding $36,000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the year was a $2,000,000, 10-year, 9% note payable dated January 1, 2011. What is the amount of interest that should be capitalized by Bass during 2017?

$240,000
$120,000
$233,600
$377,600

Answer rating: 100% (QA)

The amount of interest that must be capitalized is as calculated below The amount... View the full answer