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When may a company include interest costs as part of the cost of the asset? A When they must borrow money to finance the manufacture
When may a company include interest costs as part of the cost of the asset?
A When they must borrow money to finance the manufacture of their inventory items.
B When they are self-constructing a piece of equipment they will use to manufacture their products, but only during the period of construction.
C Interest is never allowed to be capitalized.
D When they buy a piece of equipment and finance its acquisition by a bank loan.
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