On May 1, 2012 Raymond's Ltd acquired land and a building from ABC for its new head office at a cost of $640,000. The owner, Raymond was pleased because the land and the building had appraised values of $200,000 and $600,00 respectively. Additional costs associated with the acquisition included legal fees of $4,000 and back taxes owing on the property of $6,000. On December 31, 2012, Raymond's Ltd also paid $3,000 to repair the building's furnace. The building has an expected useful life of 10 years, and the company uses straight-line for its capital assets.

Prepare the journal entries to record

the acquisition of the land and the building on May 1, 2012

All journal entries related to the land the building on December 31, 2012