Question: When there is only specific debt that qualify for capitalization of interest, the excess funds not needed to pay for construction may be temporarily invested

When there is only specific debt that qualify for capitalization of interest, the excess funds not needed to pay for construction may be temporarily invested in interest-bearing securities. Interest earned on these temporary investments should be O a. offset ainst interest cost incurred during construction. O b. multiplied by an appropriate interest rate to determine the amount of interest to be capitalized. O c. used to increase the cost of assets being constructed. O d. recognized as revenue of the period.

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