(Solution Download) 1 Cole Co began constructing a building for its own


1. Cole Co. began constructing a building for its own use in January 2013. During 2013, Cole incurred interest of $50,000 on specific construction debt and $20,000 on other borrowings. The amount of interest that could have been avoided if the building construction expenditures had been used to pay off debt during 2013 was $40,000. What amount of interest cost should Cole capitalize?
(a) $20,000
(b) $40,000
(c) $50,000
(d) $70,000
2. Which of the following costs of goodwill should be capitalized?
...................Maintaining Goodwill.................. Developing Goodwill
(a)...................................... Yes.......................................... No
(b) .................................... No......................................... No
(c) .................................... Yes....................................... Yes
(d) .................................... No....................................... Yes

 







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