#3 and #4 only

used in the normal course of business tangible in nature all of these Which one of the following statements is true? a. 3. If a plant asset is self-constructed for less than it would cost to purchase, a profit should be recorded upon the completion of the construction. b. When property, plant, or equipment is acquired through donation, a gain is credited. Development stage enterprises need not report losses before sales are made. Interest cannot be capitalized when an asset is substantially complete and ready for its intended use c. d. 4. All of the following are arguments in favor of including only the incremental fixed overhead costs in the cost a. b. c. d. of a self-constructed asset, except that the cost of the asset is the additional cost incurred to produce it overhead would be incurred whether or not the construction took place asset cost will more closely approximate the cost of a purchased asset decision to construct the asset should be based on the total incremental cost and not include allocated fixed overhead 5. Under GAAP, which one of the following types of costs should not be capitalized? rearrangements b. routine maintenance C replacements d. additions