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What is the total amount of interest costs to be capitalized

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Problem - Belardo Corporation constructed and manufactured certain assets and incurred the following avoidable interest costs in connection with those activities:

Avoidable Interest Costs Incurred

Warehouse constructed for Belardo's own use $20,000

Special-order machine for sale to unrelated customer, produced according to customer's specifications 9,000

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

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

Reference no: EM132885248

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