CPA Far Quiz
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SELECT FINANCIAL STATEMENT ACCOUNTS
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Meridian Corp constructed a warehouse for its own use. Direct costs included materials $800,000, labor $600,000, and allocated overhead $200,000. During construction, Meridian borrowed $1,000,000 specifically for this project at 8% annual interest. Construction began January 1 and was completed December 31. The company also has general debt of $2,000,000 at 6% that could have been avoided. What amount should be capitalized as the total cost of the warehouse?
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