Have an RV dealer that has a loan on some of her inventory and as the RV's are sold the cost of the RV is paid off the loan. My question is does the interest attributed to each RV still in inventory at year end get capitalized or expensed as finance charges?
For example one RV has a loan on it for $25,000 and did not sell by 12/31/05 so there is finance charges of $710 paid in 2005 for carrying this in inventory, do I expense this or add it to the cost of the RV?
For example one RV has a loan on it for $25,000 and did not sell by 12/31/05 so there is finance charges of $710 paid in 2005 for carrying this in inventory, do I expense this or add it to the cost of the RV?
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