Carlson Company began constructing a building for its own use in January 2012.During 2012,Carlson incurred interest of $70,000 on specific construction debt and $15,000 on other borrowings.Interest computed on the weighted-average amount of accumulated expenditures for the building during 2012 as $60,000.
Required:
What amount of interest should Carlson capitalize?

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The Answer of Carlson Company began constructing a building for its own use in January 2012.During 2012,Carlson incurred interest of $70,000 on specific construction debt and $15,000 on other borrowings.Interest computed on the weighted-average amount of accumulated expenditures for the building during 2012 as $60,000.
Required:
What amount of interest should Carlson capitalize?

Carlson Company Began Constructing a Building for Its Own Use