Which of the following assets do not qualify for capitalization of interest costs incurred during construction of the assets?

Question

Quizplus · Accepted Answer

Interest costs can be capitalized during the period of time that is required to complete and prepare the asset for its intended use. This includes assets under construction for a company's own use, assets intended for sale or lease that are produced as discrete projects, and assets financed through the issuance of long-term debt. However, interest costs cannot be capitalized for assets that are not currently undergoing the activities necessary to prepare them for their intended use, as these costs are not considered to be directly attributable to the acquisition, construction, or production of a qualifying asset.

Which of the Following Assets Do Not Qualify for Capitalization