10 A D E G 101 (Classification of Costs and Interest Capitalization) On January 1, 2021, Blair Corporation purchased fo $820,000 a tract of land (site number 101) with a building. Blair paid a real estate broker's commission of $32,000 , legal fees of $5,100 and title guarantee insurance of $3,300 The closing statement indicated that the land value was 5 $800,000 d the building value was $200,000 Shortly after acquisition, the building was 5 razed at a cost of $139,600 Blair entered into a contract with Slatkin Builders, Inc. on March 1, 2021, for the construction of an B office building on land site number 101. The building was completed and occupied on Dec 31, 2021 Additional construction costs were incurred as follows: 0 To finance construction costs, Blair borrowed $1,000,000 on March 1, 2021. The loan 1 is payable in years in a single sum of $1,000,000 plus annual interest at 2 12% which will be paid at March 1. 13 Other debt includes a 20-year notes payable of $2,000,000 issued on January 1, 2010, with 4 an annula interest at 14% 5 Blair's building construction expenditures were as follows: 26 17 March 1, 2021: Plans and architects fees $870,000 18 May 1, 2021: Construction cost $1,251,000 19 Oct 1, 2021. Construction cost $350,000 20 Dec 31, 2021: Construction cost $550,000 2.1 22 E3 Instructions: 24 (a) Prepare a schedule that discloses the individual costs making up the balance in the land 25 account in respect of land site number 101 as of Dec 31, 2021. 26 27 BLAIR CORPORATION 28 Cost of Land (Site #101) 09 As of Dec 31, 2021 BO purchase price B1 brokers comission 32 legal fees 33 34 title guarantee insurance 35 Cost of land 37 RA ht Prnr a srhart to th 36 38 (b) Prepare a schedule that discloses the individual costs that should be capitalized in the 39 office building account as of Dec 31, 2021. Show supporting computations in good form. 40 41 42 43 44 45 46 47 48 49 BLAIR CORPORATION 50 Cost of Building 51 As of Dec 31, 2021 52 Construction cost 53 Interest capitalized during 2021 54 55 Cost of building 56 57 58 5 HW