Eeyore Toys made significant renovations to one of its retail stores. Total costs of the renovation were $800,000 completed over six months ending October 31, 2019. The company financed the renovation costs with a short-term bank loan with a 6% interest rate. The company received the $500,000 proceeds from this loan on May 1, 2019, and repaid it in full on February 28, 2020. The remaining $300,000 of construction costs were financed from existing debt, which had an average interest rate of 9%. Payments made for construction costs were as follows: 

In the period when funds from the short-term loan had not been fully used (between May 1 and August 31, 2019), the company earned $6,000 of investment income. 

Required:

How much interest cost should be capitalized on the building under IFRS?

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Date May 31, 2019 June 30, 2019 July 31, 2019 August 31, 2019 September 30, 2019 October 31, 2019 Total Payment $100,000 100,000 100,000 200,000 200,000 100,000 $800,000