To prepare for the construction of its new headquarters, Baker Co. purchased 500-acre plot of land on August 5, Year 1. Baker purchased the land using 25% cash and financed the balance using a 9% loan from First Bank. The company began preparation of the land for the construction of the building on January 30, Year 2. Which section of the authoritative guidance explicitly states whether the Year 1 interest on the bank loan qualifies for capitalization?

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Type the topic here. Correctly formatted FASB ASC topics are 3 or 4 digits. FASB ASC Some examples of correctly formatted FASB ASC responses are 205-10-05-1, 323-740- S25-1, 260-10-60-1A, 260-10-55-99 and 115-60-35-128A