The Buildings account of Postera Inc. includes the following items that were used in determining the basis for depreciating the cost of a building.
a. Organization and promotion expenses.
b. Architect’s fees.
c. Interest and taxes during construction.
d. Interest revenue on investments held to fund construction of a building.
Do you agree with these charges? If not, how would you deal with each of the items above in the corporation’s books and in its annual financial statements?
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