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  3. 3. jensen corp. purchased a container load of anti

3. Jensen Corp. purchased a container load of antiques for resale at an invoice cost...

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Accounting

3. Jensen Corp. purchased a container load of antiques for resale at an invoice cost of $950,000. The goods were paid for when they were shipped in early January. The container arrived in Canada at the end of June, and then at Jensens location, by rail, at the end of August. Jensen had to refurbish some of them which took the month of September. The refurbishing costs incurred were $100,000, which were also financed. The goods were then available for sale. Transportation costs of $98,000 were paid in October. Jensen has recorded $155,000 of total interest expense from $2,600,000 of general borrowing over the year.

Required: Compute the amount of interest that can be capitalized by Jensen related to the above

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