Fullerton Waste Management purchased land and a warehouse for $640,000. In addition to the purchase price, Fullerton made the following expenditures related to the acquisition: brokers commission, $34,000; title insurance, $5,000; miscellaneous closing costs, $8,000. Assume that Fullerton decides to use the warehouse rather than demolish it. An independent appraisal estimates the fair values of the land and warehouse at $555,000 and $185,000, respectively