THIS IS ALL THE INFORMATION THAT WAS ON THE PROBLEM ( CAN SOMEONE PLEASE HELP ME WITH IT BECAUSE I DO NOT UNDERSTAND)

On January 1, 2018 Blair Corporation purchased for $580,000 a tract of land (site number 101) with a building. Blair paid a real estate Broker;s commission of 44,000 legal fees of $6,200 and title guarantee insurance of $7,000. The closing statement indicated that the land value was $500,000 and the building value was $100,000. Shortly after acquistion, the building was razed at a cost of $34,000. Blair entered into a contract with Slatkin Builders Inc. on March 1, 2018, for the construction of an office buildiing on land site number 101. The buildiing was completed and occupied on Dec. 31, 2018. Additional construction costs were incurred as follows:

The building is estimated to have 40 year life from date of completion and will be depreciated using the 150% declining balance method. To finance construction costs, Blair borrowed $5,000,000 on March 1, 2018. The loan is payable in 10 years in a single sum of $5,000,000 plus annual interest at 10% which will be paid at March 1.

Blairs building construction expenditures were as follows:

March 1 2018 : Plans and architects fees	$600,000
May 1 2018 Construction cost	$1,000,000
October 1, 2018 Construction cost	$1,500,000
December 31, 2018 : Construction cost	$1,000,000

A.) Prepare a schedule that discloses that the individual costs making up the balance in the land account in repect of land site number 101 as of Dec. 31, 2018.

BLAIR CORPORATION Cost of Land (site101) as of Dec 31,2018

B.) Prepare a schedule that discloses the individual costs that should be capitalized in the office building account as of Dec. 31, 2018 Show supporting computations in good form.

2018	EXP	Factor	Weighted Exp
Total

Avoidable interest :

Actual interest

Capitalized interest:

BLAIR CORPORATION Cost of building As of Dec 31, 2018

Construction cost
Interest capitalized during 2018
Cost of building