In early February 2017, Huey Corp. began construction of an addition to its head office building that is expected to take 18 months to complete. The following 2017 expenditures relate to the addition:

On February 1, Huey issued a $100,000, 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:

Instructions
What amount of interest should be capitalized for the fiscal year ending December 31, 2017, according to IAS 23?

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Feb. 1 Payment #1 to contractor Mar. 1Payment to architect July 1 Payment #2 to contractor Dec. 1 Payment #3 to contractor Dec. 31 Asset carrying amount $120,000 24,000 60,000 180,000 $384,000 Other Debt Instruments Outstanding-2017 996, 15-year bonds, issued May 1, 2002, matured May 1, 2017 796, 10-year bonds, issued June 15, 2011 696, 12-year bonds, issued May 1, 2017 Principal Amount $300,000 $500,000 $300,000