ACC 304 All Assignments ACC 304 All Assignments | Page 92

b. Interest incurred during the production of discrete projects such as
ships or real estate projects
c. Interest incurred on notes payable to vendors for routine purchases
made on a repetitive basis
d. All of these should be capitalized.
54. The use of a Discounts Lost account implies that the recorded
cost of a purchased inventory item is its
a. invoice price.
b. invoice price plus the purchase discount lost.
c. invoice price less the purchase discount taken.
d. invoice price less the purchase discount allowable whether taken or
not.