Question
The Slow company has started the construction of an asset on September 1, 2019 and finished it on November 1, 2020. The weighted average expenditure
The Slow company has started the construction of an asset on September 1, 2019 and finished it on November 1, 2020. The weighted average expenditure as calculated at the end of the construction in 2020 was: $725,456. In 2020, the comp had the following outstanding indirect debts: Debt One-year loan payable taken out on March 31, 2019 Two-year note payable Faken out on June 1, 2020 Amount $67,000 $120,000 Annual rate 5% 7% Assuming there is no direct debt related to this construction, the interest that will be capitalized on indirect debt in 2020 is (calculate ratios to 2 decimal places): a) $47,980 b) $45,130 Oc) $7,133 d) $5,737
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