During 2019, Chan Company incurred average accumulated expenditures of HK$3,200,000 during construction of assets that...
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Accounting
During 2019, Chan Company incurred average accumulated expenditures of HK$3,200,000 during construction of assets that qualified for capitalization of interest. The only debt outstanding during 2019 was a HK$5,000,000, 7.5%, 6-year note payable dated July 1, 2018. What is the amount of interest that should be capitalized by Chan during 2019?
a. HK$0.
b. HK$120,000.
c. HK$240,000.
d. HK$375,000.
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