Select the account that would be increased to show each of the following costs.
-The interest costs incurred during the construction period of a new building built by a company for its own use
A)Land
B)Land Improvements
C)Buildings
D)Machinery and Equipment
E)An Expense Account

Question

Quizplus · Accepted Answer

The interest costs incurred during the construction period of a new building built by a company for its own use are capitalized as part of the building's cost. This increases the value of the building asset on the company's balance sheet.

Select the Account That Would Be Increased to Show Each