During 20x6, 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 Special-order machine for sale to unrelated customer, produced according to customer's specifications Inventories routinely manufactured, produced on a repetitive basis 20,000 9,000 7,000 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 costs to be canitalized?

During 20x6, 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 Special-order machine for sale to unrelated customer, produced according to customer's specifications Inventories routinely manufactured, produced on a repetitive basis 20,000 9,000 7,000 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 costs to be canitalized?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter12: Nonrecognition Transactions

Section: Chapter Questions

Problem 57CP

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