On the 1st of Jan 2023, ABC Company purchased a 10,000 arch of land to construct a building to be used as a headquarter for the company. The purchasing price of the land was 5,000,000 that was paid in cash. The purchases process took three months that the company paid the following expenses to complete the purchase transaction: - 200,000 attorney's fees and property taxes. - 100,000 ownership transfer taxes. - 20,000 commission to the real estate agent. Following the transfer, the company started to work on the land to make ready for the construction, and paid the following additional expenses: - 50,000 Demolition of an old buildings and barns that were in the land. - 10,000 proceeds from residual value of the demolished buildings. - 20,000 cost of digging, filling, and clearing. - 50,000 cost of fences installed around the land before start constructions and it will be removed once the construction completed. Required: 1. Calculate the total cost of the land that must be recognized in ABC' books. 2. Journalize the required entry to recognize the land in ABC's books