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Interest cost that is capitalized during construction should a.be written off over the remaining term of...

Interest cost that is capitalized during construction should
a.be written off over the remaining term of the debt.
b.be accumulated in a separate deferred charge account and written off equally over a 40-yearperiod.
c.not be written off until the related asset is fully depreciated or disposed of.
d.be included in the depreciation base of the related asset.

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Answer #1

Option D

Interest cost which was capitalized during the construction is included in the cost of asset instead of being treated as expense. So it should be included in the cost (depreciation base) of asset
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