ACC 304 All Assignments ACC 304 All Assignments | Page 147

c. multiplied by an appropriate interest rate to determine the amount
of interest to be capitalized.
d. recognized as revenue of the period.
40.
Interest cost that is capitalized should
a. be written off over the remaining term of the debt.
b. be accumulated in a separate deferred charge account and written
off equally over a 40-year period.
c. not be written off until the related asset is fully depreciated or
disposed of.
d. none of these.
S41. Which of the following is not a condition that must be satisfied
before interest capitalization can begin on a qualifying asset?