During 2016, Bell Corporation constructed assets costing 750,000. The weighted average accumulated expenditures on these...
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During 2016, Bell Corporation constructed assets costing 750,000. The weighted average accumulated expenditures on these assets during 2016 was 450,000. To help pay for construction, 330,000 was borrowed at 10% on January 1, 2016 and funds not needed for construction were temporarily invested in short-term securities, earnings 7,000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the years was a 375,000 10 year, 9% bond payable dated January 1, 2010. What is the amount of interest that should be capitalized by Bell during 2016?
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