(Determine the cost of a capital asset, LO 2) The Nameless Cove Hotel (Nameless Cove) is a luxury resort in Atlantic Canada. Recently Nameless Cove built a new, Olympic-size swimming pool on its grounds. The pool was constructed by Deep and Sure Pool Company (Deep and Sure). The following costs were incurred to build the pool:

Required:
Determine the amount that should be capitalized as part of the cost of the pool.
Explain your reasoning for including or excluding each item in the capitalized cost.

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i. Building permits ii. Design costs iii. Redesign costs required to make changes that Nameless Cove wanted after construction began iv. Cost of clearing the land of trees and bushes V. Amount paid to Deep and Sure for construction of the pool vi. Damage and repairs to an adjacent property caused when heavy equipment was brought onto the site to do the excavation vii. Cost of meals served to workers viii. Penalties paid to Deep and Sure because Nameless Cove did not want construction to be done on certain regular working days ix. Damage and repair of underground telephone lines that Nameless Cove neglected to advise Deep and Sure about $ 1,000 8,000 5,000 12,000 150,000 22,000 2,000 9,000 5,500 x. Construction of a patio 45,000 xi. Electrical wiring installed for pool equipment and lighting around the patio 15,000 xii. Cost of new plants for the patio 9,200