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I need help in solving the below 2 questions (possibly using ACC 310 methods) Thanks! 6. Interest costs related to which of the following assets
I need help in solving the below 2 questions (possibly using ACC 310 methods) Thanks!
6. Interest costs related to which of the following assets qualify for interest capitalization? A. An asset a company manufactures and sells on a routine basis. B. An asset ready for its intended use at the time of purchase. C. An asset a company constructs as a discrete project for sale or lease, or an asset a compan constructs for its own use. D. All of the above 7. Assuming interest costs related to an asset qualify for interest capitalization, which of the following best describes the determination of how much interest should be capitalized? A. The amount capitalized should be the average between the actual and avoidable interest amounts. B. The amount capitalized should be the higher of the actual or avoidable interest amounts. C. The amount capitalized should be the lower of the actual or avoidable interest amounts. D. The amount capitalized should always be the actual interest amount. E. The amount capitalized should always be the avoidable interest amountStep by Step Solution
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