As part of its expansion into the United States, FFA decided to construct a facility in California to reduce cross-border shipping issues and limit foreign exchange risk. To fund this initiative, FFA obtained a loan from Bank of America on April 1st, 2026 for CAD 5,000,000, with monthly interest payments of 0.5% ($25,000 per month, $300,000 annually). Of the CAD 5,000,000, CAD 4,500,000 is being used to fund the construction of the new facility, while the remaining CAD 500,000 is being used for other purposes. FFA began construction of the new facility on July 1st, 2026. There were no expenditures prior to July 2026. Given the loan pertains to the construction of PPE, Stephanie capitalized the entire interest balance to PPE ($25,000 x 9 = $225,000).