During 2016,Dosekis Co

question 47

Multiple Choice

During 2016,Dosekis Co.incurred average accumulated expenditures of $400,000 during construction of assets that qualified for capitalization of interest.The only debt outstanding during 2016 was a $500,000,10%,5-year note payable dated January 1,2013.What is the amount of interest that should be capitalized by Dosekis during 2016?

• A)$10,000
• B)$40,000
• C)$50,000
• D)$80,000

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Definitions:

Trade Sector

An economic segment that involves the exchange of goods and services across domestic and international boundaries.

Share Of The Economy

Represents the proportion or segment of the economy attributed to specific sectors, businesses, or activities.

Increasing

Describes a situation or quantity that is becoming larger or more in number over time.

Labor Productivity

The measure of economic output per unit input of labor, typically assessed as output per worker or per work hour.