Alzparker Company Constructed a Building at a Total Actual Cost

question 134

Multiple Choice

Alzparker Company constructed a building at a total actual cost of $30,000,000. Weighted-average accumulated expenditures during the construction period amounted to $23,000,000. As a result of financing arrangements, actual interest was $1,820,000, and avoidable interest was $1,600,000. What is the capitalized cost of the building?

• A) $24,820,000
• B) $31,600,000
• C) $31,820,000
• D) $33,420,000

---

Definitions:

SAT Mathematics

A standardized test section evaluating mathematical reasoning and problem-solving skills, part of the SAT exam for college admissions in the United States.

Confidence Interval

A statistical range, computed from sample data, believed to encompass the actual value of a population parameter.

Normal Distributed

A statistical distribution where observations are equally distributed around the mean, creating a bell-shaped curve.

Significance Level

The threshold below which a p-value is considered statistically significant, typically set at 0.05 or 5%.