EXERCISE 3.

EXERCISE 3.2
 LAND
Cash paid for land and old building 1,000,000
Removal of old building
Payment to tenants of old building to vacate premises
Architect Fee
Building permit
Fee for title search 10,000
Survey before construction 20,000
Excavation
Cost of new building constructed
Assessment fee 5,000
Cost of grading, leveling and landfill 45,000
Driveways and walks
Temporary quarters for construction crew
Temporary building to house tools and materials
Cost of construction changes

1,080,000

LAND
Fair value of land 1,800,000
Legal fees 10,000
Payment of Mortgage 50,000
Payment of taxes 20,000
Cost of razing building
Grading and drainage 15,000
Architect fee
Payment to contractor
Interest cost
Driveway and parking lot
Cost of trees, shrubs, and other landscaping
Cost of installing lights in parking lot
Premium for insurance

1,895,000
BUILDING

50,000
15,000
200,000
30,000

100,000
6,000,000

40,000
80,000
60,000
50,000

6,625,000

BUILDING LAND IMPROVEMENT

30,000

200,000
8,000,000
300,000
40,000
55,000
5,000
 25,000

8555000 100,000