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
Answer:B
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