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