TOPIC: Foreign Currency Transaction Gains/Losses On July 30, 202X, Company Z started constructing a building in the United States for its own use. To finance the construction, Company Z obtained a loan from Foreign Bank on July 15, 202X. Foreign Bank is located in France and the loan is denominated in a foreign currency. Company Z is preparing its December 31, 202X financial statements. The Company appropriately determined that in accordance with ASC 835: Interest, it can capitalize construction interest on the loan as part of the building cost. The Company would also like to capitalize as part of the building cost any associated foreign currency transaction gains or losses in connection with the Foreign Bank construction loan.

Required: Utilize the FASB Codification to determine if Company Z can capitalize foreign currency transaction gains and losses as part of the building cost. Provide specific Codification references.