calculating acquisition costs of long lived assets outback stea 252085

Calculating acquisition costs of long-lived assets. Outback Steakhouse opened a new restaurant on the site of an existing building. It paid the owner $260,000 for the land and building, of which it attributes $52,000 to the land and $208,000 to the building. Outback incurred legal costs of $12,600 to conduct a title search and prepare the necessary legal documents for the purchase. It then paid $35,900 to renovate the building to make it suitable for Outback’s use. Property and liability insurance on the land and building for the first year was $12,000, of which $4,000 applied to the period during renovation and $8,000 applied to the period after opening. Property taxes on the land and building for the first year totaled $15,000, of which $5,000 applied to the period during renovation and $ 10,000 applied to the period after opening. Calculate the amounts that Outback Steakhouse should include in the Land account and in the Building account.

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