Answer:
d. recognized as revenue of the period.
Explanation:
As per general accounting principles, when amount is borrowed for construction of capital asset then the interest is capitalized as the asset qualifies for capitalization being a long term assets.
Sometimes the funds remain idle and that the funds are invested in some other source for income, which might be in the form of interest.
This basically is an income for the company, no matter what was the exact purpose of such funds.
Even though interest expense is to be capitalized but interest income is a revenue income.
