Determining the Cost of an Asset. Omar Corporation paid $300,000 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)	$40,000
Architect fees (associated with the new warehouse)	$45,000
Interest on the construction loan (for the new warehouse)	$21,000

(a) What value should be assigned to the tract of land?

(b) What value should be assigned to the new warehouse?