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Carlson Company began constructing a building for its own use in January 2012. During 2012, Carlson incurred interest of $75,000 on specific construction debt and

Carlson Company began constructing a building for its own use in January 2012. During 2012, Carlson incurred interest of $75,000 on specific construction debt and $16,750 on other borrowings. Interest computed on the weighted-average amount of accumulated expenditures for the building during 2012 as $55,000 Required: What amount of interest should Carlson capitalize?

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