Use the Following Information for Questions

question 128

Multiple Choice

Use the following information for questions.
On January 2, 2010, Indian River Groves began construction of a new citrus processing plant.The automated plant was finished and ready for use on September 30, 2011.Expenditures for the construction were as follows:
Indian River Groves borrowed $1,100,000 on a construction loan at 12% interest on January 2, 2010.This loan was outstanding during the construction period.The company also had $4,000,000 in 9% bonds outstanding in 2010 and 2011.
-The interest capitalized for 2010 was:

• A)$180,000
• B)$48,000
• C)$192,000
• D)$60,000

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Definitions:

Draft

A system of compulsory recruitment for military service, often implemented during times of war to ensure an adequate supply of soldiers.

Johnson Administration

The period of U.S. leadership under President Lyndon B. Johnson, from 1963 to 1969, known for significant civil rights legislation and the Vietnam War.

Diplomatic Feelers

Initial, informal actions or communications sent through diplomatic channels to gauge the reaction or intentions of another country or entity before making formal proposals.