During 2002, Sloan, Inc. began a project to construct a new corporate headquarters. The following are costs incurred by Sloan for this project: $1,000 government fine during construction, due to construction safety violations. Interest of $186,000 on construction financing incurred during completion of construction. Interest of $147,000 on construction financing paid after construction. $12,000 architecture fees. $65,000 cost of razing existing building on land. What amount of the above costs should be capitalized to the cost of the building? I know the answer is $198,000, but why are the government fees and demo costs for the old building not used?