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In early February 2020, Martinez Corp. began construction of an addition to its head office...

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Accounting

In early February 2020, Martinez Corp. began construction of an addition to its head office building that is expected to take 18 months to complete. The following 2020 expenditures relate to the addition:

Feb. 1 Payment #1 to contractor $102,000
Mar. 1 Payment to architect 27,000
July 1 Payment #2 to contractor 55,200
Dec. 1 Payment #3 to contractor 186,000
Dec. 31 Asset carrying amount $370,200

On February 1, Martinez issued a $105,000, three-year note payable at a rate of 10% 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 Outstanding2020 Principal amount
9%, 15-year bonds, issued May 1, 2005, matured May 1, 2020 $306,000
6%, 10-year bonds, issued June 15, 2014 $504,000
7%, 12-year bonds, issued May 1, 2020 $306,000

What amount of interest should be capitalized for the fiscal year ending December 31, 2020, according to IAS 23?

The interest???

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