Yes, you have the correct formula to arrive at your adjusted basis of the asset.
Yes the refinance costs are being amortized over the life of the loan from the date of refinance and it is the correct action for these fees.
These will NOT be included as part of the cost basis, but will continue on as though you never exchanged the property.
Likewise the property asset will not change, it will continue on as though you never exchanged the property, although you can rename it to identify your new property.
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