Question: mynextproblem ltd has acquired a new building called next in line building for $2000000. it has incurred incidental costs of $30000 in the acquisition process

mynextproblem ltd has acquired a new building called next in line building for $2000000. it has incurred incidental costs of $30000 in the acquisition process for legal fees, real estate agent's fees and stamp duties. At the quaterly broad meeting, the management believes that these costs should be expensed because they have not increased the value of the bulding and, if the building was immediately resold, these amounts would not be recouped. in other words, the fair value of the building is considered to still be $2000000

Required: Discuss how these costs should be accounted for in the books of mynextproblem ltd. maximum 200 words.

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