During 2014,Brent Industries,Inc

question 38

Essay

During 2014,Brent Industries,Inc.constructed a new manufacturing facility at a cost of $12,000,000.The weighted average accumulated expenditures for 2014 were calculated to be $5,400,000.The company had the following debt outstanding at December 31,2014:
(a)10 percent,five-year note to finance construction of the manufacturing facility,dated January 1,2014,$3,600,000.
(b)12 percent,20-year bonds issued at par on April 30,2013,$8,400,000.
(c)8 percent,six-year note payable,dated March 1,2013,$1,800,000.
Determine the amount of interest to be capitalized by Brent Industries for 2014.

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Definitions:

Manipulative

Involving the skillful handling or controlling of situations or people to achieve one's own goals, often in a manner considered deceitful or unfair.

Vocalics

The nonverbal aspects of the voice, including pitch, rate, and volume.

Gestures

Physical movements or signals used to convey messages or express thoughts without verbal communication.

Nonverbal Messages

Communication expressed through body language, facial expressions, gestures, and other non-linguistic means.