Falcon Waste Management purchased land and a warehouse for $630,000. In addition to the purchase...
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Accounting
Falcon Waste Management purchased land and a warehouse for $630,000. In addition to the purchase price, Falcon made the following expenditures related to the acquisition: broker's commission, $33,000; title insurance, $4,500; miscellaneous closing costs, $7,500. 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 $474,500 and $255,500, respectively. Determine the amounts Falcon should capitalize as the cost of the land and the building
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