Exeter plc acquired land for £400,000 and related expenses on conveyancing and stamp duty amounted to £50,000. The construction of the company headquarters commenced on 1 February 2012, and with an interruption of a month, because of heavy rain, was completed by 31 October 2012, at a cost of £650,000, though the company did not move into the premises till 1 December of the same year. Financing of the construction was intended to be partly from issuing a loan note, but the 8% Loan notes of £500,000 could not be issued until 1 April 2012. Exeter plc does not depreciate land and depreciates buildings at 20% per annum on cost.

Required: 

Explain with reasons the amount at which the land and building will be reported on the company’s Statement of financial position on 31 December 2012.