During 2007, Gannon Co

question 30

Multiple Choice

During 2007, Gannon Co.incurred average accumulated expenditures of $400,000 during construction of assets that qualified for capitalization of interest.The only debt outstanding during 2007 was a $500,000, 10%, 5-year note payable dated January 1, 2005.What is the amount of interest that should be capitalized by Gannon during 2007?

• A)$0.
• B)$10,000.
• C)$40,000.
• D)$50,000.

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Definitions:

Bronchovesicular Breath Sounds

Normal breath sounds heard over the central chest or back, indicating air moving through the large airways.

Diaphragmatic Excursion

The movement of the diaphragm during breathing, observed and measured to assess lung function and health.

Crepitus

A crackling or grating sound or sensation produced by friction between bone and cartilage or the fractured parts of a bone.

Decreased Breath Sounds

A condition where the intensity of breathing sounds is less than expected upon auscultation, often indicative of respiratory issues.