Use the Following Information for Questions 82 Through 85

question 45

Multiple Choice

Use the following information for questions 82 through 85.
On January 2, 2014, Indian River Groves began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2015. Expenditures for the construction were as follows: Indian River Groves borrowed $2,200,000 on a construction loan at 12% interest on January 2, 2014. This loan was outstanding during the construction period. The company also had $8,000,000 in 9% bonds outstanding in 2014 and 2015.
-The interest capitalized for 2014 was:

• A) $360,000
• B) $96,000
• C) $304,000
• D) $120,000

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Definitions:

Imported

Products or services that are imported into a country from a different country for the purpose of selling or utilization.

Export Subsidy

A government policy to encourage export of goods and services, allowing producers to sell them at a lower price on the international market.

Import Quotas

Government-imposed limits on the amount or volume of goods that can be imported into a country.