On January 1, an Enterprise Fund Issues $1,000,000 of 6

question 23

Multiple Choice

On January 1, an Enterprise Fund issues $1,000,000 of 6%, ten-year tax-exempt bonds to finance the construction of a new water treatment plant. During the year, the Enterprise Fund earned $40,000 of interest income on the bond proceeds and incurred $600,000 of construction costs. What amount of interest cost should be capitalized for the year?

• A) $0.
• B) $20,000.
• C) $36,000.
• D) $60,000.

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Definitions:

Codon

A sequence of three nucleotides that together form a unit of genetic code in a DNA or RNA molecule, representing a specific amino acid.

Termination Codon

A nucleotide triplet within messenger RNA that signals the end of translation, resulting in the release of the newly synthesized protein.

Anticodon

Three nucleotides in a row create a genetic code unit within a transfer RNA molecule, matching a corresponding codon in messenger RNA.

mRNA Codons

Triplet sequences of nucleotides in messenger RNA that specify which amino acid will be added next during protein synthesis.