The Conity Corporation Has an Electric Mixer Division and an Electric

question 80

Multiple Choice

The Conity Corporation has an Electric Mixer Division and an Electric Lamp Division. Of a $13,000,000 bond issuance, the Electric Mixer Division used $9,500,000 and the Electric Lamp Division used $3,500,000 for expansion. Interest costs on the bond totaled $975,000 for the year. What amount of interest costs should be allocated to the Electric Mixer Division? (Round any intermediary calculations two decimal places and your final answer to the nearest dollar.)

• A) $563,333
• B) $711,750
• C) $3,500,000
• D) $9,500,000

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