\#1 To support construction of a new facility, you borrow $10 million at 8% for five years. Interest is paid annually. Construction takes 2 years. You temporarily invested the loan proceeds for the first 2 years, and earned $250,000 each year. How much interest can you capitalize, according to IFRS? What can you capitalize under US GAAP? \#2 You purchased a new production machine for $5 million on January 1,2018 . Its useful life was estimated to be 10 years, and the salvage value was estimated at $100,000. Your firm uses straight-line depreciation. On January 1, 2019, the machine has a fair value of \$6 million. Using the revaluation model and the cost model, what would be the effect on your financial statements? On January 1,2020 , the machine has a fair value of $4 million. Using the revaluation model and the cost model, what would be the effect on your financial statements? \#3 On January 1, 2017, you purchased a $375,000 machine for your firm. It had an estimated useful life of 8 years and an estimated salvage value of $75,000. Your firm uses straightline depreciation. On December 31, 2019, you sold the machine for $150,000. What was the amount of your gain or loss