31. CPA-08592 Sea Manufacturing Corp. is constructing a new factory building. During the current calendar year, Sea made the following payments to the construction company: January 2 $1,000,000 December 31 $1,000,000 Sea has an 8 percent, three-year construction loan of $3,000,000. What is the amount of interest costs that Sea may capitalize during the current year? a. $0 b. $80,000 c. $160,000 d. $240,000
