On January 1, 2021, LMT Inc. acquired a piece of land to construct a new office building. You have the following information about this transaction:

Price of land	$180,000
Tax on purchase of land	5% of price
Legal fees to transfer property of land to LMT	$4,500
Cost of demolishing old building on land	5,600
Income from sale of windows of old building demolished	500
Cost of new office building foundation	23,400
Cost of office building construction	460,000
Cost of insurance during construction	2,000
Cost to repair a piece of equipment used in the office buildings construction	1,000
Cost of annual insurance on office building after the construction is finished	6,000

LMT management decided to allocate the following amounts to the parts of the office building, and estimated the corresponding useful lives and residual values as follows:

	Allocated cost	Useful life	Residual value
Windows	$50,000	10 years	$2,000
Furnace	24,000	10 years	0
Elevators	80,000	20 years	10,000
Building	Rest of office building total cost	50 years	20,000

The building was ready for use on October 1, 2021, but LMT started using it on November 30^th, 2021. LMT Inc. applies IFRS.

Required

1. Calculate the total cost of land and of the office building and prepare the appropriate journal entry assuming everything was paid for in cash.
2. Calculate the total depreciation expense to be recorded on December 31, 2021 assuming the straight-line method is used for all property, plant and equipment.