What Is the Amount of Interest That Crocus Should Capitalize

question 63

Multiple Choice

What is the amount of interest that Crocus should capitalize in 2009, 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 is correct.Of the average accumulated expenditures ($124.25 million from question 100), $70 million was financed at 6% for 10 months in 2009, and the remainder of $54.25 million was financed at 8% for that period.The total interest cost was: ($70 million .06 10/12) + ($54.25 million .08 10/12) = $7, 117,000 (rounded)

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Definitions:

Blood Pressure

The pressure exerted by circulating blood upon the walls of blood vessels, often measured for health assessment.

Ventricles Contract

The phase of the cardiac cycle in which the ventricles of the heart contract, pumping blood to the body and lungs.

SA Node

The SA Node, or sinoatrial node, acts as the heart's natural pacemaker, generating electrical impulses that initiate the heartbeat.

Right Ventricle

One of the four chambers of the heart, responsible for pumping oxygen-depleted blood to the lungs.