Interest is eligible to be capitalized as part of an asset's cost, rather than being expensed immediately, when:

Question

Quizplus · Accepted Answer

All three options (incurring interest during the construction period of the asset, the asset being a discrete construction project for sale or lease, and the asset being self-constructed) are situations where interest can be capitalized as part of an asset's cost, rather than being expensed immediately.

Interest Is Eligible to Be Capitalized as Part of an Asset's