What Is the Amount of Interest That Crocus Should Capitalize

question 80

Multiple Choice

What is the amount of interest that Crocus should capitalize in 2008, using the specific interest method?

• A)$1.90 million
• B)$1.95 million
• C)$2.96 million
• D)None of these is correct.Average expenditures for 2008: ($54 million 6/6) + $22 million 3/6) = $65 million.The interest is: $65 million .06 6/12 = $1.95 million.

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