Multiple Choice
Answer the following questions using the information below:
The Sparky Electrical Products Company has an Electric Mixer Division and an Electric Lamp Division.Of a $30 000 000 bond issue,the Electric Mixer Division used $21 000 000 and the Electric Lamp Division used $9 000 000 for expansion.Interest costs on the bond totalled $1 500 000 for the year.
-What amount of interest costs should be allocated to the Electric Mixer Division?
A) $4 300 000
B) $1 050 000
C) $450 000
D) $21 000 000
Correct Answer:
Verified
Correct Answer:
Verified
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