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What is the total amount of interest cost to be capitalized

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Reference no: EM132722146

During 2016, Belardo Corporation constructed and manufactured certain assets, and incurred the following interest costs in connection with those activities:

Interest costs incurred on warehouse constructed for Belardo's own use: 20,000

Special-order machine for sale to unrelated customer: 9,000

Inventories routinely manufactured, produced on a repetitive basis: 7,000

Problem 1: All of these assets required an extended period of time for completion. Assuming the effect of interest capitalization is material, what is the total amount of interest cost to be capitalized?

a. 0

b. 20,000

c. 29,000

d. 36,000

Reference no: EM132722146

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