Scenario 4: On January 1, 2016, XYZ Co. began construction of a new office building for its own use. The building was completed on October 31, 2016 and employees began moving in on November 1, 2017. XYZ borrowed $500,000 at 5% on January 1, 2016 to help finance the construction. XYZ had other debt outstanding for the entire 2016 amounting to $1,000,000 with an interest rate of 8%. Construction expenditures incurred during 2016 were as follows: January 1: $500,000 April 1: 300,000 October 31: 100,000 XYZ Co. recorded a $900,000 Office Building and $105,000 of Interest Expense for the year. a) Identify the section(s) of the FASB Codification that provide basic guidance of the costs to be included in the historical cost basis of property, plant and equipment? Are interest costs included? Yes. b) Identify the section(s) of the FASB Codification that provides guidance on the period over which interest costs may be capitalized. For Scenario 4, what is the capitalization period? Explain. c) Identify the section(s) of the FASB Codification that provides guidance on the amount of interest costs to be capitalized that are relevant for Scenario 4. d) How much of the interest costs can be capitalized? Show supporting computations? e) How much should be recorded to Office Building and Interest Expense for 2016?