Assignment
Discuss with your team the following case study:
Client X contacted you for clarification and recommendations regarding whether the interest cost on construction of a new warehouse may be included in the cost of the new warehouse.
Write a team consensus response of no more than 700 words to include the following:
• Provide rational and clarifications of the proper treatment of interest cost under the rules of GAAP.
• Explain the impact of this interest cost on:
o Financial statements.
o Income statement.
o Balance sheet.
o Statement of owners' equity.