Which of the following is the recommended approach to handling interest incurred in financing the construction of

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Which of the following is the recommended approach to handling interest incurred in financing the construction of property, plant and equipment?

a. Capitalize only the actual interest costs incurred during construction.

b. Charge construction with all costs of funds employed, whether identifiable or not.

c. Capitalize no interest during construction.

d. Capitalize interest costs equal to the prime interest rate times the estimated cost of the asset being constructed.

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Accounting For Governmental And Nonprofit Entities

ISBN: 9781260118858

19th Edition

Authors: Jacqueline Reck, Suzanne Lowensohn, Daniel Neely

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Question Posted: Jan 09, 2013 01:53 AM

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Which of the following is the recommended approach to handling interest incurred in financing the construction of

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a Capitalize only the actual interest costs incurred during construction Actual ...View the full answer

Accounting For Governmental And Nonprofit Entities

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