The amount of interest that can be capitalized for a qualifying asset is the lesser of the amount considered as avoidable interest costs or actual interest cost.

Question

Quizplus · Accepted Answer

The amount of interest that can be capitalized is indeed the lesser of the avoidable interest (the amount of interest cost during the period that theoretically could have been avoided if expenditures for the asset had not been made) or the actual interest cost incurred by the entity during the period.

The Amount of Interest That Can Be Capitalized for a Qualifying