Falcon Waste Management purchased land and a warehouse for $650,000. In addition to the purchase price, Falcon made the following expenditures related to the acquisition: broker's commission, $35,000; title insurance, $5,500; miscellaneous closing costs, $8,500. Assume that Falcon decides to use the warehouse rather than demolish it. An independent appraisal estimates the fair values of the land and warehouse at $637,500 and $112,500, respectively. Determine the amounts Falcon should capitalize as the cost of the land and the building. Answer is not complete. Capitalized cost of land Capitalized cost of building

Falcon Waste Management purchased land and a warehouse for $650,000. In addition to the purchase price, Falcon made the following expenditures related to the acquisition: broker's commission, $35,000; title insurance, $5,500; miscellaneous closing costs, $8,500. Assume that Falcon decides to use the warehouse rather than demolish it. An independent appraisal estimates the fair values of the land and warehouse at $637,500 and $112,500, respectively. Determine the amounts Falcon should capitalize as the cost of the land and the building. Answer is not complete. Capitalized cost of land Capitalized cost of building

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 6RE

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