Mattox Company Is Building a New Plant That Will Take

question 156

Multiple Choice

Mattox Company is building a new plant that will take three years to construct. The construction will be financed in part by funds borrowed during the construction period. There are significant architect fees excavation fees and building permit fees. Which of the following statements is true?

• A) Excavation fees are capitalized but building permit fees are not.
• B) Architect fees are capitalized but building permit fees are not.
• C) Interest is capitalized during the construction as part of the cost of the building.
• D) The capitalized cost is equal to the contract price to build the plant less any interest on borrowed funds.

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Definitions:

Hormones

Chemical substances produced by glands in the body that regulate the activity of certain cells or organs.

Bloodstream

The flowing body fluid that circulates throughout the body via the circulatory system, carrying oxygen, nutrients, and hormones to various tissues and removing carbon dioxide and other wastes.

Psychological Influences

Factors that affect mental processes and behavior, including emotions, attitudes, thoughts, and social dynamics.

Endocrine System

A collection of glands that produce hormones regulating metabolism, growth and development, tissue function, sexual function, reproduction, sleep, and mood, among other things.