How much shall be allocated at the land?

29.How much shall be allocated to the new building?

30.How much is the cost of the land improvement?

 

Purchase price of land and an old usable apartment building Fair value of the land (no fair value for the old building) Legal fees, including fee for title search Payment of land mortgage and related interest due at time of sale Payment of delinquent property taxes (assumed by buyer) Cost of razing the old apartment building Cost of relocating squatters on the land to make way for construction Grading and drainage on land site Architect fee on new building Payment to building contractor Interest cost on specific borrowing during construction Payment of medical bills of employees in construction accident Cost of paving driveway and parking lot Cost of trees, shrubs, and other landscaping Cost of installing light in parking lot Premium for insurance on building during construction Cost of open house party to celebrate opening of building 2,000,000 1,800,000 10,000 50,000 20,000 30,000 65,000 15,000 200,000 8,000,000 300,000 10,000 40,000 55,000 5,000 25,000 60,000