Question

Which of the following statements is correct regarding the capitalization rate used for interest capitalization? Question 24 options: If the average accumulated expenditures are less than the specific borrowing amount, use the interest rate associated with the specific borrowing for the entire average accumulated expenditures If there are no specific borrowings, use the interest rate on the largest debt outstanding If the average accumulated expenditures are less than the specific borrowing amount, use the weighted-average interest rate for all other debt for the entire average accumulated expenditures If there are no specific borrowings, do not capitalize interest

Answer 1

Correct Answer:

1. If the average accumulated expenditures are less than the specific borrowing amount, use the interest rate associated with the specific borrowing for the entire average accumulated expenditures

Step-by-step explanation:

This Option is the correct statement regarding to capitalization rate for interest capitalization.