Brief Exercise 10-2 (Static) Acquisition cost; land and building [LO10-1]

Falcon Waste Management purchased land and a warehouse for $600,000. In addition to the purchase price, Falcon made the following expenditures related to the acquisition: brokers commission, $30,000; title insurance, $3,000; miscellaneous closing costs, $6,000. The warehouse was immediately demolished at a cost of $18,000 in anticipation of the building of a new warehouse.

Determine the amounts Falcon should capitalize as the cost of the land and the building.