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What is carrying amount of the building on December

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Question - On January 1, 2019 ART Company borrowed $6,000,000 at an annual interest rate of 10% to finance the cost of a new office building. Construction began on January 3, 2019 and a total of $4,000,000 of costs were incurred during 2019 and the weighted average expenditures was $3,400,000. Since not all of the cash that was borrowed was used immediately, ART earned $80,000 of interest income by temporarily investing some of the borrowed funds prior to use. The project was completed in 2020.

Based solely on the above information, what is carrying amount of the building on December 31, 2019 under IFRS?

A. $3,400,000

B. $4,420,000

C. $4,000,000

D. $4,260,000

Reference no: EM132702050

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