Company A is in the process of having a building built on site. Company A...
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Accounting
Company A is in the process of having a building built on site. Company A want to capitalize the interest during construction. What authoritative literature addresses this topic. Company A paid $500,000 to the construction company on June 30th and $600,000 on September 30th. They have a construction loan of $400,000 @ 5% and a $3,000,000 general loan @ 10%. What authoritative literature addresses this topic? How much interest should Company A capitalize? Provide FASB codification.
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