Question: Cole Co. began constructing a building for its own use in January 2010. During 2010, Cole incurred interest of $50,000 on specific construction debt, and

Cole Co. began constructing a building for its own use in January 2010. During 2010, Cole incurred interest of

$50,000 on specific construction debt, and $20,000 on other borrowings. Interest computed on the weighted-average amount of accumulated expenditures for the building during 2010 was $40,000. What amount of interest cost should Cole capitalize?

a. $20,000

b. $40,000

c. $50,000

d. $70,000

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