Question: 1. Cole Co. began constructing a building for its own use in January 2011. During 2011, Cole incurred interest of $50,000 on specific construction debt

1. Cole Co. began constructing a building for its own use in January 2011. During 2011, Cole incurred interest of $50,000 on specific construction debt and $20,000 on other borrowings. The amount of interest that could have been avoided if the building construction expenditures had been used to pay off debt during 2011 was $40,000. What amount of interest cost should Cole capitalize?
(a) $20,000
(b) $40,000
(c) $50,000
(d) $70,000
2. Which of the following costs of goodwill should becapitalized?

Maintaining Goodwil Yes No Yes No Developing Goodwill No No Yes Yes b)

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