Cole Co. began constructing a building for its own use in January 1993. During 1993, Cole incurred interest of $50,000 on specific construction debt, and $20,000 on other borrowings. Interest computed on the weighted-average amount of accumulated expenditures for the building during 1993 was $40,000. What amount of interest cost should Cole capitalize?

1. $20,000
2. $40,000
3. $50,000
4. $70,000

please include a solution manual computation so i can better understand. thanks and i need asap : )))