(A) Draw Maria’s production possibilities frontier for reading economics and sociology.

F. On July 31, 2017, King Company engaged Duval Tooling Company to construct a special-purpose piece of factory machinery. Construction began immediately and was completed on November 1, 2017. To help finance construction, on July 31 King issued a $400,000, 3-year, 11% note payable at Wellington National Bank, on which interest is payable each July 31. $300,000 of the proceeds of the note was paid to Duval on July 31. The remainder of the proceeds was temporarily invested in short-term marketable securities (trading securities) at 9% until November 1. On November l, King made a final $100,000 payment to Duval. Other than the note to Wellington, King only outstanding liability at December 31, 2017, is a $300,000, 8%, 6-year note payable, dated January 1, 2014, on which interest is payable each January 1. Instructions (5%) Calculate the total interest cost to be capitalized during 2017. (Round all computations to the nearest dollar.)

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(A) Draw Maria’s production possibilities frontier for reading economics and sociology.

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