A company borrows some money which it uses to acquire a parcel of land for a real

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A company borrows some money which it uses to acquire a parcel of land for a real estate development project. Before construction begins, a period of time passes while the company obtains the necessary planning permission. May the company capitalize interest during this period? If so, should it capitalize the interest to the land or the building account?

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Intermediate Accounting

ISBN: 978-0324300987

10th Edition

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

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