ACCOUNTING
Multiple Choice
The Hassan Corporation has an Electric Mixer Division and an Electric Lamp Division. Of a $20,000,000 bond issuance, the Electric Mixer Division utilized $14,000,000 and the Electric Lamp Division utilized $6,000,000 for expansion. Interest costs on the bond totaled $1,500,000 for the year.
What amount of interest costs should be allocated to the Electric Lamp Division?
a. $450,000
b. $1,050,000
c. $4,200,000
d. $6,000,000
Click here for the SOLUTION
No comments:
Post a Comment