During 2007, Gannon Co. incurred average accumulated expenditures of $400,000 during construction of assets that qualified for capitalization of interest. The only debt outstanding during 2007was a $500,000, 10%, 5-year note payable dated January 1, 2005. What is the amount of interest that should be capitalized by Gannon during 2007?  

$0.   

$10,000.   

$40,000. 

$50,000.

Answer rating: 100% (QA)

During 2007 Gannon Co incurred average accumulated expenditures of 400... View the full answer