When commencing the business 2 January 2015, Company Ltd purchased the following assets for $400,000 (plus GST): Fair value of assets

Land $270,000

Building $160,000

Machinery $50,000

Total $480,000

The purchase of the assets comprised $150, 000 cash and a loan for the remaining amount. Company Ltd also had additional costs relating to the purchase: installation of fences around the property $1,250 (plus GST), health and safety inspection of the machinery $1,750 (plus GST), architects costs to ensure the building is suitable to manufacture heavy gym equipment on its floors $5,000 (plus GST), construction and printing of a training manual on how to operate the machinery $600 (plus GST), delivery costs for the machinery $350 (plus GST) and cost of repairs to fix damage to the building when the machinery was delivered and the truck reversed into the building $3,600 (plus GST).

Q). Determine the amounts to be recorded in the balance sheet for the newly acquired land, building and machinery. Consider any additional amounts that need to be included in the cost of the land, building and machinery and justify why or why not they should be included. Include in your answer journal entry required to record the lump-sum acquisition. Show your calculations in a table.