VictorInc. began operations on January 1, 20X4. It prepares financial statements in

accordance with IFRS. The following is a summary of selected financial information for the

year ended December 31, 20X4:

Equipment was purchased and brought into use on March 1, 20X4, at a cost of

$300,000. Fortsman paid $80,000 cash and signed a 3% note for the balance payable

in full on March 1, 20X6.

Victor received a $250,000 shareholder loan that was advanced on May 1, 20X4.

Interest is payable annually at 5%.

Victor received $150,000 in proceeds from a bank loan that was advanced on June

1, 20X4. Interest is payable monthly on the first of the month at 4% per annum, starting

July 1, 20X4.

Victor made cash interest payments of $8,000 during the 20X4 year.

What amount shouldVictor Inc. have reported as interest expense for the year ended

December 31, 20X4?