Reference no: EM132432061

Question - 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. How do you figure out and what are the amounts that Outback Steakhouse should include in the Land account and in the Building account.