Question

Lucas Incorporated had recently completed construction of a new manufacturing facility. Prior to the approval of the building permits the company operated a parking lot on the land. This parking lot had revenues net of costs of $ 65,000. Construction will take place over an 18- month period. Total construction costs were as follows:
Material ................. $ 320,000
Labour .................. 550,000
Incremental overhead ........... 120,000
General overhead ............. 50,000
Interest costs on general loan........ 100,000
Cost permits............... 20,000

Required:
Provide the total amount of construction costs that would be capitalized to the cost of the building using ASPE.



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  • CreatedFebruary 17, 2015
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