In early February 2023, Ayayai Corp. began construction of an addition to its head office building that is expected to take 18 months to
complete. The following 2023 expenditures relate to the addition:
Feb. 1
Payment #1 to contractor
$111,000
Mar. 1
Payment to architect
24,000
July 1
Payment #2 to contractor
56,100
Dec. 1
Payment #3 to contractor
177,000
Dec. 31
Asset carrying amount
$368,100
On February 1, Ayayai issued a $102,000, three-year note payable at a rate of 12% to finance most of the initial payment to the
contractor. No other asset-specific debt was entered into. Details of other interest-bearing debt during the period are provided in the
table below:
Other Debt Instruments Outstanding-2023
8%, 15-year bonds, issued May 1, 2008, matured May 1, 2023
8%, 10-year bonds, issued June 15, 2017
7%, 12-year bonds, issued May 1, 2023
Principal Amount
$297,000
$500,000
$297,000
What amount of interest should be capitalized year ended December 31, 2023, according to IAS 23? (Do not round