During 2007, Belardo Corporation constructed and manufactured certain assets, and incurred the following interest costs in connection with those activities:
|
Interest Costs Incurred |
|
|
Warehouse constructed for |
|
|
Belardo’s own use |
$20,000 |
|
Special order machine for sale |
|
|
to unrelated customer, |
|
|
produced according to |
|
|
customer’s specifications |
9,000 |
|
Inventories routinely manufactured, |
|
|
produced on a repetitive basis |
7,000 |
All of these assets required an extended period of time for completion. Assuming that the effect of interest capitalization is material, what is the total amount of interest costs to be capitalized?
a. $0
b. $20,000
c. $29,000
d. $36,000