) Assets that qualify for interest cost capitalization include companys own sed
ID: 2587105 • Letter: #
Question
) Assets that qualify for interest cost capitalization include companys own sed A) assets under construction for a com B) assets not currently being used beclu use and acquired through C) assets that are ready for their inte issuance of long-term debt of excess capacity t when . 10) Goodwill is recorded as an intangible asse A the fair value of a company's assets exceeds carrying value of those assets e fair value of a company's assets is greater than the cost of acquiring that company C) a company's exceptional quality, reputation, or capability enables it to generate exceptional earnings D) one company acquires another companyExplanation / Answer
Solution: 9. Answer is A). assets under construction for a company's own use. Notes: Assets that qualify for interest cost capitalization include assets under construction for a company's own use. Interest capitalization can be only for those assets which are under construction are for utilize in future for its own uses by the entity. So, remaining two option's interest should not be capitalized. 10. Answer is d. one company acquires another company. Notes: In case assets is acquired under combination when the cost paid is more than value of fair value of assets acquired , it is recognized as goodwill. When goodwill of another firm or company is acquired then it is also recognized as goodwill. In case of internally generated goodwill , is generally not shown in books of accounts. Please feel free to ask if anything about above solution in comment section of the question.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.