A company recently bought a new production machine and has incurred the following costs.All of the costs can be included in the cost of the asset except?

Question

Quizplus · Accepted Answer

Interest expense on the loan to finance the purchase after the asset is put into use cannot be included in the cost of the asset. Interest costs incurred after an asset is ready for its intended use are considered financing costs, not capital expenditures.

A Company Recently Bought a New Production Machine and Has