Falcon Waste Management purchased land and a warehouse for $760,000. In addition to the purchase price, Falcon made the following expenditures related to the acquisition: brokers commission, $46,000; title insurance, $11,000; miscellaneous closing costs, $14,000. 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 $731,000 and $129,000, respectively