III. Capitalized Interest On January 1,2017 , a company began constructing a new asset. It borrowed $1,000,000 to finance the construction with an annual interest rate of 5%. Assume the following payments for construction costs: 3/1/17 - $200,000;1/1/18 - $500,000;4/1/18 - $300,000. Interest earned on the cash invested from the loan proceeds totaled $10,000 in 2017 and $2,000 in 2018 . The asset was ready for use on November 30, 2018. a. What is the total cost of the asset when completed under US GAAP? b. What is the total cost of the asset when completed under IFRS
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