purposes of capitalizing borrowing cost, a qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. Which of the following is not a qualifying asset?

purposes of capitalizing borrowing cost, a qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. Which of the following is not a qualifying asset?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter10: Long-lived Tangible And Intangible Assets

Section: Chapter Questions

Problem 4Q

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Question

For purposes of capitalizing borrowing cost, a qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. Which of the following is not a qualifying asset?

a. Power generation facility

b. Investment property

C. Manufacturing plant

D Inventory that is routiniely manufactured or otherwise produced in large quantity on a repetitive basis over a short period of time

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