When May a Company Include Interest Costs as Part of the Cost

Multiple Choice

When may a company include interest costs as part of the cost of the asset?

A) When they are self-constructing a piece of equipment they will use to manufacture their products, but only during the period of construction.
B) Interest is never allowed to be capitalized.
C) When they must borrow money to finance the manufacture of their inventory items.
D) When they buy a piece of equipment and finance its acquisition by a bank loan.