Calculating Capitalized Interest Kit Company borrows $5 million at 12% on January 1, 2016, specifically for the purpose of financing the construction of a building that is expected to take 18 months to complete. Kit invests the total amount at 11% until it makes payments for the construction project. During the first year of construction, Kit incurs the following expenditures related to this construction project: January 1 $1,000,000 April 1 1,600,000 October 1 1,200,000 December 31 500,000 Required: Compute the amount of interest expense Kit would capitalize related to the construction of the building. $ Compute the amount of interest revenue Kit would recognize. $ Assume that Kit uses IFRS. What amount of interest would be capitalized related to the construction of the building? $