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During 2012, Kimmel Co. incurred average accumulated expenditures of $600,000 during construction of assets that qualified for capitalization of interest. The only debt outstanding during 2012 was a $750,000, 10%, 5-year note payable dated January 1, 2010. What is the amount of interest that should be capitalized by Kimmel during 2012?
a. $0.
b. $15,000.
c. $60,000.
d. $75,000.
Please show work so that I can follow what you did and thinking process.
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