Which of the following costs should not be capitalized as part of fixed asset value?

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Interest on loans or deferred payment obligations related to acquiring or constructing fixed assets prior to their operational readinessEquipment held in reserve and maintenance toolsCosts associated with test runs and trial production phasesGeneral administrative and overhead expensesNone of the above

Explanation

Costs that can be directly attributed to the acquisition or construction of a fixed asset are eligible for capitalization. This includes interest on related loans, standby and servicing equipment, and expenses from test runs. However, general administrative and overhead costs are not directly tied to the asset and therefore should not be capitalized.