On 1 January 2020, Entity A contracted with Entity B to construct a residential building for $20,000,000 on a piece of land that Entity A had already purchased years earlier.

The construction was started on 1 January 2020. Entity A was to make five payments in 2020, with the last payment scheduled for the date of completion. The building was completed on 31 December 2020. Entity A made the following payments during 2020:

• 1 January 2020 $2,000,000
• 1 April 2020 $4,000,000
• 30 June 2020 $6,100,000
• 30 September 2020 $4,400,000
• 1 December 2020 $3,500,000

Entity A had the following debt outstanding on 31 December 2020:

• 12%, 2-year long-term debt of $7,500,000 which was borrowed on 1 July 2019. It is specifically related to the residential building project on 1 January 2020. The fund is re-invested and earns interest at a rate of 6.00% per annum.
• 8%, 10-year long-term debt of $6,000,000 which was borrowed on 31 March 2016.
• 10%, 5-year long-term debt of $7,000,000 which was borrowed on 31 March 2018.

The end of the reporting period is 31 December.

The annual interest payable to various lenders is always settled by direct bank transfer within 2 weeks after the end of the reporting period.

REQUIRED:

According to relevant accounting standards, measure the amount of the items below on 31 December 2020.

ANSWERS:

The interest payable is $.

The borrowing cost capitalised is $.

The borrowing cost expensed is $.

The carrying amount of the qualifying asset is $.