During 2025, Vaughn Corporation constructed and manufactured certain assets and incurred the following interest costs in connection with those activities. Factory constructed for Vaughn's own use Inventories routinely manufactured, produced on a repetitive basis Special-order machine for sale to unrelated customer, produced according to customer's specifications Interest Costs Incurred The total amount of interest costs to be capitalized $ $44,000 8,500 3,500 All of these assets required an extended period of time for completion. Assuming the effect of interest capitalization is material, what is the total amount of interest costs to be capitalized?

Answer rating: 100% (QA)

In capitalization of interest costs the interest cost is added to the cost of a longterm asset or in... View the full answer