Interest revenue on investments held to fund construction


1. The Buildings account of Postera Inc. includes the following items that were used in determining the basis for depreciating the cost of a building.

(a) Organization and promotion expenses.

(b) Architect's fees.

(c) Interest and taxes during construction.

(d) Interest revenue on investments held to fund construction of a building. Do you agree with these charges? If not, how would you deal with each of the items above in the corporation's books and in its annual financial statements?

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Accounting Basics: Interest revenue on investments held to fund construction
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