Satisfied before interest capitalization


Which of the following is not a condition that must be satisfied before interest capitalization can begin on a qualifying asset?

a) Interest cost is being incurred.

b) Expenditures for the assets have been made.

c) The interest rate is equal to or greater than the company's cost of capital.

d) Activities that are necessary to get the asset ready for its intended use are in progress

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Accounting Basics: Satisfied before interest capitalization
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