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A telecommunications company ha acquired a 3G license. The license c sold or licensed to a third party. Ho management intends to use it to op wireless network, and the developm the not work otorto when the lio on

A telecommunications company ha acquired a 3G license. The license c sold or licensed to a third party. Ho management intends to use it to op wireless network, and the developm the not work otorto when the lio on

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A telecommunications company has acquired a 3G license. The license could be sold or licensed to a third party. However, the management intends to use it to operate a wireless network, and the development of the network starts when the license is acquired. Should borrowing costs on the acquisition of the 3G license be capitalized until the network is ready for its intended use? Respond in no more than three (3) sentences.
Transcribed Image Text:A telecommunications company has acquired a 3G license. The license could be sold or licensed to a third party. However, the management intends to use it to operate a wireless network, and the development of the network starts when the license is acquired. Should borrowing costs on the acquisition of the 3G license be capitalized until the network is ready for its intended use? Respond in no more than three (3) sentences.
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