Use the Following Information for Questions

question 33

Multiple Choice

Use the following information for questions
On March 1, 2010, Beck Company purchased land for an office site by paying $270,000 cash.Beck began construction on the office building on March 1.The following expenditures were incurred for construction:

The office was completed and ready for occupancy on July 1.To help pay for construction,
$360,000 was borrowed on March 1, 2010 on a nine percent, three-year note payable.Other than the construction note, the only debt outstanding during 2010 was a $150,000, 10%, six-year note
payable dated January 1, 2010.
-Assume the weighted-average accumulated expenditures for the construction project are $435,000.The amount of interest cost to be capitalized during 2010 is

• A)$39,150.
• B)$41,400.
• C)$39,900.
• D)$50,400.

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Definitions:

Pineal Gland

A small endocrine gland in the brain, secreting melatonin and involved in regulating sleep patterns.

Thyroid Gland

The endocrine gland that produces thyroxine and regulates metabolism.

Pituitary Gland

A pea-sized gland located at the base of the brain that produces hormones which regulate important bodily functions, including growth, metabolism, and reproduction.

Adrenal Glands

Glands located above the kidneys that produce a variety of hormones including adrenaline and cortisol, which regulate stress responses and other vital functions.