Should Interest Be Included in the Cost of a Fixed Asset Why or Why Not?

Answer

I don't think that interest should be included in the cost of a fixed asset as really interest is what you pay as a penalty for not having the cash in the first place. It isn't part of the asset.
Q&A Related to "Should Interest Be Included in the Cost of a..."
1. Capitalize the directly attributable interest expenses. For example, if your company takes out a $1 million loan - at an 8 percent interest rate - to build a new manufacturing
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Fixed assets are also tangible assets with the following characteristics: (1) for the production of goods, provide services, for rental or administrative purposes; (2) to a term of
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The total amount of cost for a business will depend on how much you...
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PST yes. GST or HST only if you are not a GST registrant.
http://answers.yahoo.com/question/index?qid=201108...
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