The period of time for which interest is to be capitalized ends when ________.
A) no additional interest cost is actually being incurred on direct financing for the acquisition of the asset
B) a constructed asset is substantially complete and put into use
C) a constructed asset is substantially complete and ready for its intended use
D) an acquired asset is received and ready for its intended use

Question

Quizplus · Accepted Answer

Interest capitalization ends when a constructed asset is substantially complete and ready for its intended use, as this marks the point at which the asset can start generating revenue or providing utility.

The Period of Time for Which Interest Is to Be