Omar Corporation paid $200,000 for a tract of land that had an old gas station on it. The gas station was demolished at a cost of $20,000 and a new warehouse was constructed on the site at a cost of $550,000.

In addition, several other costs were incurred:

Legal fees (associated with the purchase of the land)$35,000Architect fees (associated with the new warehouse)$42,000Interest on the construction loan (for the new warehouse)$18,000

(a) What value should be assigned to the tract of land?

(b) What value should be assigned to the new warehouse?