Interest incurred on the construction of a building can be included in the cost of the building
A) during the construction period of a building.
B) for as long as the interest is payable.
C) if the building is financed by a mortgage.
D) under no circumstances.

Question

Quizplus · Accepted Answer

Interest incurred during the construction period of a building can be capitalized and included in the cost of the building, as it is considered part of the cost necessary to bring the asset to its intended use.

Interest Incurred on the Construction of a Building Can Be