In early February 20I4 Huey Corp began construction of an
In early February 20I4, Huey Corp. began construction of an addition to its head office building that is expected to take 18 months to complete. The following 20I4 expenditures relate to the addition:
On February 1, Huey issued a $1,000,000, 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-2014 Principal amount
7%, 10-year bonds, issued June 15, 2008 ............... $500,000
6%, 12-year bonds, issued May 1, 2014 .............. $300,000
9%, 15-year bonds, issued May 1, 1999, matured May 1, 2014 ..... $300,000
What amount of interest should be capitalized according to IAS 23?
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