Nebraska Steakhouse Opened a New Restaurant on the Site of an Existing

Essay

Nebraska Steakhouse opened a new restaurant on the site of an existing building.It paid the owner $520,000 for the land and building, of which it attributes $104,000 to the land and $416,000 to the building.Nebraska incurred legal costs of $25,200 to conduct a title search and prepare the necessary legal documents for the purchase.It then paid $71,800 to renovate the building to make it suitable for Nebraska's use.Property and liability insurance on the land and building for the first year was $24,000, of which $8,000 applied to the period during renovation and $16,000 applied to the period after opening.Property taxes on the land and building for the first year totaled $30,000, of which $10,000 applied to the period during renovation and $20,000 applied to the period after opening.Calculate the amounts that Nebraska Steakhouse should include in the Land account and in the Building account.