The amount of capitalized interest for a constructed asset is the lesser of actual interest incurred and avoidable interest.

Name: The amount of capitalized interest for a constructed asset is the lesser of actual interest incurred and avoidable interest.
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Capitalized interest is limited to the lesser of the actual interest cost incurred during the construction period or the avoidable interest, which is the interest cost that could have been avoided if the construction had not taken place.

The Amount of Capitalized Interest for a Constructed Asset Is