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

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Question:

In early February 2020, Bramble 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	21,000
July 1	Payment #2 to contractor	55,700
Dec. 1	Payment #3 to contractor	183,000
Dec. 31	Asset carrying amount	$361,700

On February 1, Bramble issued a $102,000, 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 Outstanding—2020		Principal amount
9%, 15-year bonds, issued May 1, 2005, matured May 1, 2020		$309,000
8%, 10-year bonds, issued June 15, 2014		$490,000
7%, 12-year bonds, issued May 1, 2020		$309,000

What amount of interest should be capitalized for the fiscal year ending December 31, 2020, according to IAS 23? (Do not round intermediate calculations. Round capitalization rate to 2 decimal places, e.g. 52.75% and final answer to 0 decimal places, e.g. 5,275.)

Amount of interest