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The Beechnut Corporation has an Electric Mixer Division and an Electric Lamp Division. Of a $10,000,000 bond issuance, the Electric Mixer Division used $7,000,000 and
The Beechnut Corporation has an Electric Mixer Division and an Electric Lamp Division. Of a $10,000,000 bond issuance, the Electric Mixer Division used $7,000,000 and the Electric Lamp Division used $3,000,000 for expansion.
Interest costs on the bond totaled $750,000 for the year. What amount of interest costs should be allocated to the Electric Mixer Division?
the answer is b 525,000 Please show the work, explain this.
|
| $225,000 | |
|
| $525,000 | |
|
| $2,100,000 | |
|
| $7,000,000 |
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