the period of time during which interest must be capitalized ends when course hero

When does the capitalization period end?

The period of time during which interest must be capitalized ends when A. the asset is substantially complete and ready for its intended use. B . no further interest cost is being incurred. C . the asset is abandoned, sold, or fully depreciated. D . the activities that are necessary to get the asset ready for its intended use have begun.

What are the conditions for interest capitalization to begin?

Jun 02, 2021 · The period of time during which interest must be. 9. The period of time during which interest must be capitalized ends when a. The asset is substantially complete and ready for the intended use. b. No further interest is being incurred. c. The asset is abandoned, sold or fully depreciated. d. The activities that are necessary to get the asset ready for the intended …

When do you capitalize no interest charges during construction?

The period of time during which interest must be capitalized ends when a. The asset is abandoned, sold or fully depreciated b. The activities that are necessary to get the asset ready for the intended use have begun c. The asset is substantially complete and ready for the intended use. d. No further interest is being incurred.

How do you calculate minimum amount of interest capitalized?

Jun 20, 2017 · Interest for an asset is capitalized during the period under which the asset is being prepared for its intended use and the interest capitalization ends when the asset is substantially complete and ready for its intended use.

What is avoidable interest?

The interest rates used in computing avoidable interest are the specific interest rate and the weighted average rate. The interest capitalization period ends when: the asset is substantially complete and ready for its intended use. activities to get the asset ready for its intended use are in progress.

What is revalued after initial recognition?

after initial recognition, the revalued amount is fair value less subsequent depreciation and impairment losses. when an asset is revalued, any increase in carrying amount is reported as miscellaneous revenue. when an asset is revalued, any increase in carrying amount is reported as miscellaneous revenue.

What are the characteristics of property, plant and equipment?

The only major characteristic of property, plant and equipment shown below is. they are long-term in nature. they lack physical substance. they are acquired for resale. they are always subject to depreciation. Click card to see definition 👆. Tap card to see definition 👆. they are long-term in nature.

Is land depreciated?

They are long-term in nature and are always subject to depreciation. Land, which is part of property, plant, and equipment, is not depreciated.