Discuss interest would bruce bruce capitalize

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On January 2nd 2016 Bruce Bruce Company borrowed 6 million Euros at 10% for 1 year when the Euro was equal to $1 to finance the construction of a new office building. On January 2nd 2017; Bruce Bruce was able to acquire the 6,600,000 euros needed to pay off the loan for $6,400,000. Using GAAP what is the amount of interest that Bruce Bruce would capitalize (add) to the office building and what gain or loss would they show because of this loan? If Bruce Bruce used IFRS, what amount of interest would Bruce Bruce capitalize and what gain or loss would they show because of the loan.

Reference no: EM131746560

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