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Fullerton Waste Management purchased land and a warehouse for $660,000. In addition to the purchase price, Fullerton made the

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Answer #1

Total acquisition cost = purchase cost + brokers commission + title insurance + miscellaneous closing costs

= $660000 + $36000 + $6000 + $9000

= $711000

now,

Capitalized cost of land = {$711000/($456000 + $304000)} x $456000

= $426600

Capitalized cost of building  = {$711000/($456000 + $304000)} x $304000

= $284400

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