Question

interest is eligible to be capitalized as part of an assets cost rather than being expensed immediately when:

Answer 1

d. All of these answer choices are correct.

Step-by-step explanation:

Capitalization of interest rates is not always appropriate. The ideal situation to do so is whenever an asset needs major investment and long construction time, thus generating a considerable amount of interest costs.

Moreover, if there are huge extra accounting and administrative costs associated with capitalizing interest costs, and the advantage of the extra information is relatively low, you do not need to capitalize it.

So the all given options are fulfilled

Hence, the correct option is d.