If a Company Constructs an Asset Over a Period of Time

question 9

Multiple Choice

If a company constructs an asset over a period of time and borrows money,the amount of interest incurred during construction on the borrowed money is

• A)capitalized as part of the cost of the plant asset.
• B)amortized over the construction period.
• C)reported as interest expense on the income statement.
• D)reported as depletion on the income statement.