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Question - Twilight Corporation made a real estate purchase on April 1, 2021. The land was purchased for the construction of a new building for the company's corporate headquarters.
The following costs were incurred for the new property during the 2021 year:
Cash paid for land and rotted outbuilding
$245,970
Demolition of rotted outbuilding
26,650
Insurance coverage during period of construction of new building
11,435
Construction of new fence around the perimeter of the property
18,672
Labour and materials for construction of new building
456,105
Surveying costs prior to construction of new building
991
Landscaping property
8,889
Twilight Corporation follows IFRS.
Required - Calculate the cost of the new building for Twilight Corporation.
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