the following costs were incurred on the construction of a new building for ascme in 274462

Aug 29, 2021 | Uncategorized

The following costs were incurred on the construction of a new building for Ascme. Inc. Land $1,800,000 Clearing and grading 50,000 Closing costs 25.000 Architect fees 25,000 Building permits 10.000 Building costs 2,965,000 Paving & sidewalks 60,000 landscaping 40,000 One year insurance Policy 25.000

Ascme took out a construction loan to cover the entire project at the time the land was pun:hused. Three months alter the land was purchased, the construction on the building began. The construction period took twenty one more months. Total interest costs for the entire loan were $500,000.

Required: I) Calculate the costs of the land, building and land improvements, including the tunount of capitalized interest on the building. 2)1f an independent contractor could have completed the building costs for $100000 less than the costs incurred by Ascme, would you adjust the fair market value of the building? EXplain.