A finn presented the following income statement, which complies with the 1 standards under which it must report: Sales 20535 Cost of goods sold 14525 Operating expenses 2530 Operating income 3480 Income taxes1220 Income from continuing operations 2260 Extraordinary items, net of tax (525) Net income1735 In the next year the firm borrows $10 million to finance construction of a capital asset. Based on the differences between U.S. GAAP and International Financial Reporting Standards, this firm :（）
A. must capitalize the construction interest.
B. must not capitalize the construction interest.
C. may choose to capitalize the construction interest.
