What rate of interest should jane use to capitalize

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Reference no: EM13215062

Jane Construction Company is building an office building for speculative purposes. That is, the Company has not yet found a buyer for the building, but expects to do so within a few months. Jane, who expects to spend about another two years to complete construction of the building, asks you, his accountant, if interest and property taxes associated with this construction site should be capitalized or expensed. At what rate of interest should Jane use, if any, to capitalize any interest costs?

Reference no: EM13215062

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