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how much interest can a company capitalize during the construction of a unique manufacturing plant, assuming the company hires a construction company instead of building

how much interest can a company capitalize during the construction of a unique manufacturing plant, assuming the company hires a construction company instead of building the plant themselves?

  • the smaller of avoidable interest and the total interest accrued during the period
  • all interest that was avoided by making principle payments during the construction period
  • the total interest on the construction loan during the construction period
  • no interest can be capitalized if the company does not creat the asset itself

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