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A company borrows some money, which it uses to acquire a parcel of land on which it plans to construct a building. Before construction of

A company borrows some money, which it uses to acquire a parcel of land on which it plans to construct a building. Before construction of the building begins, a period of time passes while the company obtains the necessary planning permission. May the company capitalize interest during this period? If so, should it capitalize the interest to the land or the building account?

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