For constructed assets, the amount of capitalized interest is calculated as total construction costs times the applicable interest rate.

Name: For constructed assets, the amount of capitalized interest is calculated as total construction costs times the applicable interest rate.
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Question

Quizplus · Accepted Answer

The amount of capitalized interest is calculated based on the average amount of accumulated expenditures for the asset during the period, not the total construction costs, multiplied by the applicable interest rate.

For Constructed Assets, the Amount of Capitalized Interest Is Calculated