ALL costs that went into the DIRECT acquisition of the asset as well as COSTS TO SET IT UP for use by the firm should be accounted for in the amount recorded.
In this case that would mean that the cost price, the closing fees and the modification fees all need to be accounted in the final amount.
That would be
$400,000 + $35,000 + $60,000
= $495,000
$495,000 should be recorded as the building's cost.
As Bonnie is not currently looking for a job after she quit
and take care of her daughter, the survey conducted by the bureau of labor
statistics that Bonnie will now be counted as an individual who is not part of
the labor force because she is not working at the moment.
