Acidgreen Inc., a public corporation, constructed a new commercial building in 2021. The building was in place and became ready to be used as management intended on October 1, 2021, but it began operations on November 1, 2021 when most staff were hired. Direct labour costs incurred before October 2021, $1,000,000 Additional direct labour costs incurred in November 2021, $200,000 Material purchased for the building in September 2021, $1,500,000 Interest paid on long term construction loan prior to October 1 that is avoidable if the construction had not taken place, $100,000 Insurance premium paid on the building for the first year of operation, $60,000 What costs should be included in the cost of the new building?

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In accounting for the cost of constructing a new building the costs that should be included in the c... View the full answer