IAS 16 Q1. Bilbo Baggins started a business providing limousine taxi services on 19 Jan, 20x5. In the year to 31 December, he incurred the following costs on two of its assets: Land and building and motor vehicles. Buying cost of office premises $250,000 $10,000 Legal fees associated with purchase of office Cost of material and labor to paint office in Bilbo's favorite color $300 One year security contract of the premises $1,000 Property tax for first year $500 Mercedes E series estate cars $116,000 Number plates for cars $500 $180 Delivery charges for cars Cost of part replacement broken during delivery $400 Road license fees for cars $480 Driver's wages for first year of operations $60,000 Blank taxi receipts printed with company's name and number $450 First year insurance of vehicles $2,500 Required: calculate separately what amount should be capitalized at time of purchases as "Land and Building" and "Motor vehicles