Falcon Waste Management purchased land and a warehouse for $610,000. In addition to the purchase price, Falcon made the following expenditures related to the acquisition: brokers commission, $31,000; title insurance, $3,500; miscellaneous closing costs, $6,500. 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 $497,000 and $213,000, respectively.

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