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:

i. Building permits..................... $ 1,000

ii. Design costs ......................8,000

iii. Redesign costs required to make changes

that Nameless Cove wanted after construction began....... 5,000

iv. Cost of clearing the land of trees and bushes........... 12,000

v. Amount paid to Deep and Sure for construction of the pool.... 150,000

vi. Damage and repairs to an adjacent property caused

when heavy equipment was brought onto the site to do the excavation... 22,000

vii. Cost of meals served to workers............... 2,000

viii. Penalties paid to Deep and Sure because Nameless Cove did

not want construction to be done on certain regular working days.... 9,000

ix. Damage and repair of underground telephone lines that

Nameless Cove neglected to advise Deep and Sure about....... 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

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.