An Asset is being constructed for an enterprise's own use. The asset has been financed with a specific new borrowing. The interest cost incurred during the construction period as a result of expenditures for the asset is:
a) a part of historical cost of acquiring the asset to be written off over the estimated useful life of the asset
b) interest expense in construction period
c) recorded as a deffered charge and amortized over the term of borrowing.
d) a part of the historical cost of acquiring the asset to be written off over the term of the borrowing used to finance the consturction of the asset.