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Hank Construction Company is building a hotel for speculative purposes. Hank Company has not found a buyer for the hotel, but expects to do so
Hank Construction Company is building a hotel for speculative purposes. Hank Company has not found
a buyer for the hotel, but expects to do so within a few months. Hank Construction Company expects to
spend about another two years to complete construction of the hotel. Hank would like to know if
interest and property taxes associated with construction should be capitalized or expensed. In addition,
what interest rate, if any, should be used to capitalize interest costs? Develop your recommendations and conclusions, and state them and their rationale in one to two pages
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