Situation
After securing lease commitments from several major stores, Bay Lake Shops Inc. was organized and built a shopping center in a growing suburb. The shopping center would have opened on schedule on January 2, 2020, if it had not been struck by a severe tornado in December. Instead, it opened for business on October 2, 2020. All the additional construction costs incurred as a result of the tornado were covered by insurance.
In July 2019, in anticipation of the scheduled January opening, a permanent staff was hired to promote the shopping center, obtain tenants for the uncommitted space, and manage the property. A summary of some of the costs incurred in 2019 and the first 9 months of 2020 follows:

The promotional advertising campaign was designed to familiarize shoppers with the center. Had the company known in time that the center would not open until October 2020, it would not have made the 2019 expenditure for promotional advertising. The company had to repeat the advertising in 2020.
All the tenants who had leased space in the shopping center at the time of the tornado accepted the October occupancy date on condition that the monthly rental charges for the first 9 months of 2020 be canceled.

Directions
Research the related generally accepted accounting principles and prepare a short memo to the president that explains how the company should treat each of the costs for 2019 and the first 9 months of 2020. Cite your references and applicable paragraph numbers.

Jan. 1 to Sept. 30, 2020 2019 Interest on mortgage bonds Cost of obtaining tenants $60,000 $90,00O 28,000 58,000 34,000 34,000 Promotional advertising