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Capitalized Interest

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Capitalized interest
Interest that is not immediately expensed, but rather is considered as an asset and is then amortized through the income statement over time. In the context of project financing, interest that is paid by additional borrowing.

Capitalized Interest
Funds that an issuer places into a separate account in order to pay for future coupons on a bond. Capitalized interest is considered an asset and may be deducted from the issuer's taxes over time. There is disagreement about the benefits of this deduction; some issuers prefer to receive the deduction at once, rather than over time.


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Corporate charges are expected to rise to $15 million, reflecting lower capitalized interest in deep water Gulf of Mexico projects, Murphy said.
The credit is equal to 10% of the equipment's original total capitalized cost, less capitalized interest.
Additional funds became available from savings on capitalized interest costs spurred by the early completion of the job.
 
 
 
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