Use the Following to Answer Questions

question 61

Multiple Choice

Use the following to answer questions
On June 1,2015,the Crocus Company began construction of a new manufacturing plant.The plant was completed on October 31,2016.Expenditures on the project were as follows ($ in millions) :
On July 1,2015,Crocus obtained a $70 million construction loan with a 6% interest rate.The loan was outstanding through the end of October,2016.The company's only other interest-bearing debt was a long-term note for $100 million with an interest rate of 8%.This note was outstanding during all of 2015 and 2016.The company's fiscal year-end is December 31.
-What is the amount of interest that Crocus should capitalize in 2015,using the specific interest method?

• A)$1.90 million.
• B)$1.95 million.
• C)$2.96 million.
• D)None of these answer choices are correct.

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Definitions:

Medical Births

Childbirth overseen and managed by healthcare professionals, often involving medical interventions.

Caesarean Births

Surgical procedures used to deliver a baby through incisions in the mother's abdomen and uterus, performed when vaginal delivery would put the baby or mother at risk.

Infant Mortality

The death of young children under the age of 1, often measured as the number of deaths per 1000 live births in a given year.

Profitability to Physicians

The financial gain that doctors achieve from their medical practices and services.