Fullerton waste management purchased land and a warehouse for $800,000.In addition to the purchase price,Fullerton...
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Fullerton waste management purchased land and a warehouse for $800,000.In addition to the purchase price,Fullerton made the follwing expenditures related to the acquisition:broker's commission, $50,000; title insurance, $13,000;miscellaneous closing costs, $16,000. The warehouse was immediately demolished at a cost of $38,000 in anticipation of the building of a new warehouse.
Determine the amounts Fullerton should capitalize as the cost of the land and the building.
a)What is the capitalized cost of land?
b)What is the capitalized cost of building?
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