Question: Sun Co . was constructing fixed assets that qualified for interest capitalization. Sun had the following outstanding debt issuances during the entire year of construction:
Sun Co was constructing fixed assets that qualified for interest capitalization. Sun had the following outstanding debt issuances during the entire year of construction:
$ face value, interest.
$ face value, interest.
None of the borrowings were specified for the construction of the qualified fixed asset. Average expenditures for the year were $ What interest rate should Sun use to calculate capitalized interest on the construction?
A
B
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