What is the amount of interest that Crocus should capitalize in 2009, using the specific interest method (rounded to the nearest thousand dollars) ?
A) $7,248,000 (rounded)
B) $7,283,000 (rounded)
C) $8,740,000 (rounded)
D) None of these is correct.Of the average accumulated expenditures ($124.25 million from question 100) , $70 million was financed at 6% for 10 months in 2009, and the remainder of $54.25 million was financed at 8% for that period.The total interest cost was: ($70 million .06 10/12) + ($54.25 million .08 10/12) = $7, 117,000 (rounded)
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