Use the Following to Answer Questions

question 113

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 2016,using the specific interest method (rounded to the nearest thousand dollars) ?

• A)$7,248,000 (rounded).
• B)$7,283,000 (rounded).
• C)$8,740,000 (rounded).
• D)None of these answer choices are correct.

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Definitions:

Field Dependence

A cognitive style characterizing individuals who tend to perceive and interpret information in a global, context-dependent manner.

Interpersonal Intelligence

One of Howard Gardner's multiple intelligences, referring to the ability to understand and interact effectively with others through effective communication and sensitivity to social cues.

Bodily-kinesthetic

Refers to the ability to coordinate and use one's body in skilled and complicated physical movements; often associated with physical activity and performance.

Crystallized Intelligence

The capability to apply acquired knowledge and past experiences.