Clay Company started construction on a new office building on January 1, 20X1, and it moved into
Question:
Clay Company started construction on a new office building on January 1, 20X1, and it moved into the finished building on July 1, 20X2. Of the building’s $2,500,000 total cost, $2,000,000 was incurred in 20X1 evenly throughout the year. Clay’s incremental borrowing rate was 12% throughout 20X1, and the total amount of interest incurred by Clay during 20X1 was $102,000.
Required:
What amount should Clay report as capitalized interest at December 31, 20X1?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Question Posted: