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Fulsom Co.began construction of a new factory at the beginning of 2017.At the end of the year,construction was completed,and construction costs totaled $200,000.Fulsom borrowed $180,000 at the beginning of 2017 to finance the construction and repaid the loan at the end of 2017.The interest rate on the loan was 9%.Determine the following amounts.
A. The actual interest incurred on the construction loan during 2017 .
B. The interest to be capitalized for 2017 .
C. The total cost of the factory reported on the balance sheet.
D. What impact does capitalizing interest have on net income for 2017? Explain.
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