G Q1 (Classification of Costs and Interest Capitalization) On January 1, 2021, Blair Corporation purchased for $820,000 a tract of land (site number 101) with a bullding. Blair paid a real estate broker's commission of $32,000 legal fees of $5,100 and titie guarantee insurance of $3,300 The closing statement indicated that the land value was $800,000 and the building value was $200,000. Shortly after acquisition, the building was razed at a cost of $39,600 Blair entered into a contract with Slatkin Builders, Inc. on March 1, 2021, for the construction of an office building on land site number 101. The building was completed and occupied on Dec 31, 2021. Additional construction costs were incurred as follows: To finance construction costs, Blair borrowed $1,000,000 on March 1, 2021. The loan is payable in 10 years in a single sum of $1,000,000 plus annual interest at 12% which will be paid at March 1, Other debt includes a 20-year notes payable of $2,000,000 issued on January 1,2010, with an annula interest at 14% Blair's building construction expenditures were as follows: March 1, 2021: Plans and architects fees May 1, 2021: Construction cost Oct 1, 2021: Construction cost Dec 31, 2021: Construction cost $650,000 $1,250,000 $350,000 $550.000 Instructions: (a) Prepare a schedule that discloses the individual costs making up the balance in the land account in respect of land site number 101 as of Dec 31, 2021. BLAIR CORPORATION Cost of Land (Site #101) As of Dec 31, 2021 Cost of land (b) Prepare a schedule that discloses the individual costs that should be capitalized in the office building account as of Dec 31, 2021. Show supporting computations in good form. Interest Capitalization Exchange + Ready 22 23 Instructions: 24 (a) Prepare a schedule that discloses the individual costs making up the balance in the land account in 25 respect of land site number 101 as of Dec 31, 2021 26 27 BLAIR CORPORATION 28 Cost of Land (Site #101) 29 As of Dec 31, 2021 30 31 32 33 34 35 36 Cost of land 37 38 (b) Prepare a schedule that discloses the Individual costs that should be capitalized in the office 39 building account as of Dec 31, 2021. Show supporting computations in good form. 40 BLAIR CORPORATION Cost of Building As of Dec 31, 2021 42 43 44 45 46 47 48 49 50 51 52 Construction cost 53 Interest capitalized during 2021 54 55 Cost of building 56 57 58 59 60 61 62 63 Interest Capitalization Exchange + Ready