Assume that interest cost qualifying for capitalization in 2017 was charged to interest expense in 2017. What effect, if any, does this error have on the net book value of plant assets at 2017 and 2018, and net income in 2017 and 2018? The code is: O = Overstate U = Understate NE = No Effect
2017
Net Book Value of Plant at 12/31/17
a. U
b. U
c. NE
d. U
Net Income
a. U
b. O
c. NE
d. U
