ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 117

d. the activities that are necessary to get the asset ready for
its intended use have begun.

37. Which of the following statements is true regarding
capitalization of interest?

a. Interest cost capitalized in connection with the purchase of
land to be used as a building site should be debited to the land
account and not to the building account.

b. The amount of interest cost capitalized during the period
should not exceed the actual interest cost incurred.