An asset is being constructed for an enterprise's own use. The asset has been financed with a specific new borrowing. The interest cost incurred during the construction period as a result of expenditures for the asset is *   A. interest expense in the construction period.   B. a part of the historical cost of acquiring the asset to be written off over the estimated useful life of the asset.   C. a part of the historical cost of acquiring the asset to be written off over the term of the borrowing used to finance the construction of the asset.   D. recorded as a deferred charge and amortized over the term of the borrowing.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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An asset is being constructed for an enterprise's own use. The asset has been financed with a specific new borrowing. The interest cost incurred during the construction period as a result of expenditures for the asset is *
 
A. interest expense in the construction period.
 
B. a part of the historical cost of acquiring the asset to be written off over the estimated useful life of the asset.
 
C. a part of the historical cost of acquiring the asset to be written off over the term of the borrowing used to finance the construction of the asset.
 
D. recorded as a deferred charge and amortized over the term of the borrowing.
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