Gerry Ltd. has just finished construction on a strip mall that was built for the purpose of leasing to tenants. The cost of the land was $1,200,000 and the construction cost was $875,000, including $30,000 of wasted labour (half of which was abnormal). A specialist contractor was hired to install a powerful air conditioning system, which cost an additional $25,000. What amount should be recognized as the cost for this investment property?