$2-B$

securities$,$ from which Novak realized investment income of $$261,400.$

What amount should Novak report as capitalized interest at December $31,2025?$

Capitalized interest. $$86,760$

B:

Situation II

During $2025,$ Splish Corporation constructed and manufactured certain assets and incurred the following interest costs in connection with those activities.

Interest Costs Incurred

Warehouse constructed for Splish's own use

$$32,610$

Special$-$order machine for sale to unrelated customer, produced according to customer's specifications

$9,570$

Inventories routinely manufactured, produced on a repetitive basis

$8,190$

All of these assets required an extended period of time for completion.

Assuming the effect of interest capitalization is material, what is the total amount of interest costs to be capitalized?

ANSWER: The total amount of interest costs to be capitalized.