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Warner Corporation began constructing a new warehouse for its operations during the current year. In the year Warner incurred interest of $10,000 on a working
Warner Corporation began constructing a new warehouse for its operations during the current year. In the year Warner incurred interest of $10,000 on a working capital (i.e., non-construction) loan, and interest on a construction loan for the warehouse of $70,000. Interest computed on the average accumulated expenditures for the warehouse construction was $50,000. What amount of interest should Warner expense for the year?
Multiple Choice
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a-$30,000.
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b-$80,000.
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c-$10,000.
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d-$130,000.
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