Which of the following statements is correct concerning interest incurred during the period of construction of capital projects?

Multiple Choice

Interest cannot be capitalized as part of the cost of general capital assets reported in governmental activities.

Interest should be capitalized as part of the cost of general capital assets reported in the governmental activities accounts at the government$-$wide level.

The capitalization of interest as part of the cost of general capital assets reported in the capital projects fund is optional.

Interest must be capitalized as part of the cost of general capital assets reported in the capital projects fund.