Question: Liddy Corp. began constructing a new warehouse for its operations during the current year. In the year Liddy incurred interest of $10,000 on a

Liddy Corp. began constructing a new warehouse for its operations during the current year. In the year Liddy incurred interest of $10,000 on a

Liddy Corp. began constructing a new warehouse for its operations during the current year. In the year Liddy incurred interest of $10,000 on a working capital loan, and interest on a construction loan for the warehouse of $70,000. Interest computed on the average accumulated expenditures for the warehouse construction was $50,000. What amount of interest should Liddy expense for the year? Multiple Choice

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