Oakland Corp. purchased land and a building for a combined cost of $500,000. Oakland must:

Record the $500,000 acquisition cost in an account called Land and Buildings

Depreciate the $500,000 acquisition cost, less any residual value, over the expected useful life of the building

Because part of the purchase involved land, record all of the cost in the Land account

Allocate the $500,000 acquisition cost to separate Land and Buildings accounts based on their respective fair market values