Liddy Corp

question 62

Multiple Choice

Liddy Corp. began constructing a new warehouse for its operations during the current year. In the year Liddy incurred interest of $30,000 on a working capital loan, and interest on a construction loan for the warehouse of $60,000. Interest computed on the average accumulated expenditures for the warehouse construction was $50,000. What amount of interest should Liddy expense for the year?

• A) $30,000.
• B) $40,000.
• C) $90,000.
• D) $140,000.

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Definitions:

Foreign Firm

A company that is based in one country while conducting business operations in one or more other countries.

Free Trade

An economic policy that allows imports and exports among countries with minimal or no tariffs, quotas, or other restrictions.

Chinese Product

Products manufactured in China, often highlighted in discussions about global trade, manufacturing practices, and economic policies.

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Companies based in the United States that produce and sell goods within the country and/or internationally.