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I need the answer to this question immediately. Please help, thanks! Which of the following statements is not true regarding capitalization of interest? When borrowed
I need the answer to this question immediately. Please help, thanks!
Which of the following statements is not true regarding capitalization of interest? When borrowed funds not immediately needed for construction are temporarily invested, the interest revenue earned cannot be offset against interest expense incurred. Interest cost capitalized in connection with the purchase of land to be used as a building site is charged to the building account. The amount of interest cost capitalized during the period is referred to as avoidable interest and cannot exceed the actual interest cost incurred. If the weighted-average accumulated expenditures exceed the specific borrowings, a weighted-average interest rate is calculated based on the specific borrowingsStep by Step Solution
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