Identify the correct statement.

Multiple choice question.

For tax purposes, it is better to capitalize interest than to deduct it immediately.

U$.$S$.$ tax rules differ from GAAP rules and do not require avoidable interest to be capitalized for tax purposes.

For financial reporting purposes, the manner in which costs are allocated is guided by which asset generated the cost.

U$.$S$.$ tax rules don't require cost allocations between land and buildings.