Alzparker Company constructed a building at a total actual cost of $24,000,000.Average accumulated expenditures during the construction period amounted to $17,000,000.As a result of financing arrangements,actual interest was $2,120,000,and avoidable interest was $1,600,000.What is the capitalizable cost of the equipment?
A)$19,120,000
B)$25,600,000
C)$26,120,000
D)$27,720,000

Question

Quizplus · Accepted Answer

The capitalizable cost of the building includes the actual cost of construction ($24,000,000) plus the avoidable interest ($1,600,000), totaling $25,600,000.

Alzparker Company Constructed a Building at a Total Actual Cost