Michele Kwok owns a small business. Her company just finished a year in which a large amount of borrowed funds $6 million was invested in a small piece of land and building including some useful equipment and fixtures. A week ago, Michele's banker required her to submit the annual financial statements for understanding the financial health of Michele's business.

Required

You are employed by Michele Kwok as her accountant, she asked you to explain what the company should do regarding the newly acquired fixed assets?