Tillman Is Building a Warehouse for Use in His Business

Multiple Choice

Tillman is building a warehouse for use in his business.The construction costs include the following:
$$\begin{array} { l r } \text { Direct labor } & \$ 35,000 \\\text { Direct materials } & 20,000 \\\text { Architect fees } & 5,000 \\\text { Interest on construction loan } & 3,000 \\\text { Depreciation of equipment used in construction } & 1,500 \\\text { Indirect Administrative costs during construction } & 2,000\end{array}$$
What is Tillman's basis in the warehouse?

A) $60,000
B) $61,500
C) $63,500
D) $64,500
E) $66,500