#3. Capitalized Interest Your client is in the planning phase for a major plant expansion, which will involve the construction of a new warehouse. The assistant controller does not believe that interest cost can be included in the cost of the warehouse because it is a financing expense. Others on the planning team believe that some interest cost can be included in the cost of the warehouse, but no one could identify the specific authoritative guidance for this issue. Your supervisor asks you to research this issue. Using the FASB codification, answer the following questions (you must quote from the codification and include the section/paragraphs to receive credit). a. What are the objectives for capitalizing interest? b. Which assets qualify for interest capitalization? c. Is there a limit to the amount of interest that may be capitalized in a period? d. If interest capitalization is allowed, what disclosures are required? #3. Capitalized Interest Your client is in the planning phase for a major plant expansion, which will involve the construction of a new warehouse. The assistant controller does not believe that interest cost can be included in the cost of the warehouse because it is a financing expense. Others on the planning team believe that some interest cost can be included in the cost of the warehouse, but no one could identify the specific authoritative guidance for this issue. Your supervisor asks you to research this issue. Using the FASB codification, answer the following questions (you must quote from the codification and include the section/paragraphs to receive credit). a. What are the objectives for capitalizing interest? b. Which assets qualify for interest capitalization? c. Is there a limit to the amount of interest that may be capitalized in a period? d. If interest capitalization is allowed, what disclosures are required