What is the justification for capitalizing on such interest, Accounting Basics

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What is the justification for capitalizing on such interest

Problem

When a company constructs its own plant, it must decide whether the interest cost on funds borrowed to finance construction should be capitalized and then amortized over the life of the asset. What is the justification for capitalizing on such interest?

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Accounting Basics: What is the justification for capitalizing on such interest

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Accounting Basics: What is the justification for capitalizing on such interest

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