6. On January 1, Year 1, Holzer Company hired a general contractor to begin construction of a new office building. Holzer negotiated a $900,000,5-year, 10 percent loan on January 1, Year 1 , to finance construction. Payments made to the general contractor for the building during Year 1 amount to $1,000,000. Payments are made evenly throughout the year. Construction is completed at the end of Year 1 , and Holzer moves in and begins using the building on January 1, Year 2. The building is estimated to have a 40 -year life and no residual value. On December 31, Year 3 , Holzer Company determines that the market value for the building is $970,000. On December 31 , Year 5 , the company estimates the market value for the building to be $950,000. Required: Use the two alternative methods allowed by IAS 16 with respect to the measurement of PPE subsequent to initial recognition to determine: a. The carrying amount of the building that would be reported on the balance sheet at the end of Years 1-5. b. The amounts to be reported in net income related to this building for Years 1-5. In each case, assume that the building's value in use exceeds its carrying value at the end of each year and therefore impairment is not an issue