The city of Oak Park constructed a new storage facility using the city's own public works employees.Construction costs were incurred in the amount of $900,000,plus $25,000 in interest on short-term notes used to finance construction.What amount should be capitalized as a general capital asset?

Question

Quizplus · Accepted Answer

The amount to be capitalized as a general capital asset is the construction cost of $900,000. Interest on short-term notes is typically not capitalized for government construction projects.

The City of Oak Park Constructed a New Storage Facility