3. Statement 1: An entity shall begin.capitalizing borrowing costs as part of the cost of qualifying asset on the date of recognition. Statement 2: Expenditures of a qualifying asset include only those expenditures that have resulted in payment of cash, transfers of other assets, or the assumption of interest- bearing liabilities. a. Only the first statement is correct. b. Only the second statement is correct. С. Both statements are correct. d. Neither of the statements is correct.
3. Statement 1: An entity shall begin.capitalizing borrowing costs as part of the cost of qualifying asset on the date of recognition. Statement 2: Expenditures of a qualifying asset include only those expenditures that have resulted in payment of cash, transfers of other assets, or the assumption of interest- bearing liabilities. a. Only the first statement is correct. b. Only the second statement is correct. С. Both statements are correct. d. Neither of the statements is correct.
Chapter1: Financial Statements And Business Decisions
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