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Jerry has learned that he must capitalize certain interest and meets with his tax advisor to discuss how to handle this calculation. His advisor explains

Jerry has learned that he must capitalize certain interest and meets with his tax advisor to discuss how to handle this calculation. His advisor explains that under 263A(f)(2), the first item he would capitalize when determining capitalized interest should be:a. avoided costs debt.b. bad debts.c. commitment fees and service charges.d. traced debt.

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