Determining the Cost of an Asset Omar Corporation paid $200,000 for a tract of land that had an old gas station on it. The gas station was demolished at a cost of $20,000 and a new warehouse was constructed on the site at a cost of $550,000. In addition, several other costs were incurred: Legal fees (associated with the purchase of the land) $35,000, Architect fees (associated with the new warehouse) $42,000, Interest on the construction loan (for the new warehouse) $18,000. Value assigned to the tract of land equals $255,000 and Value assigned to the new warehouse equals $610,000. 1.) Why was the cost included or not included in calculating the values assigned to the two long-lived assets in this problem?