On June 30, 2008, Macrosoft Company acquired a 10-acre tract of land. On the tract was a warehouse that Macrosoft intended to use as a distribution center. At the time of purchase, the land had an assessed tax value of \($6,300,000\), and the building had an assessed tax value of \($11,200,000\). Macrosoft paid \($15,000,000\) for the land and building. After the purchase, the company paid \($1,000,000\) to have various modifications made to the building.
Required:
1. At what amount should Macrosoft record the land and building?
2. For financial reporting purposes, why might Macrosoft managers prefer to assign a larger portion of the \($15,000,000\) to the land rather than to the building?