Prepare the entry to record the interest capitalized

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Reference no: EM13863900

During 2012, P & P Products finished the construction of a new warehouse in North Carolina. Construction began on January 1, 2011. The cost of the new warehouse was $3M with costs incurred evenly throughout the construction. The following information was provided:

P & P Products incremental interest rate is 10%

Actual interest incurred during 2012 was $135,000

The average accumulated expenditures was $1.5M

Required: Prepare the entry to record the interest capitalized in 2012.

Reference no: EM13863900

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