Harrier Ltd began operations on 1 July 2023. During the following year, the company acquired a tract of land, demolished the building on the land and built a new factory. Equipment was acquired for the factory and, in March 2024, the factory was ready. A gala opening was held on 18 March, with the local parliamentarian opening the factory. The first items were ready for sale on 25 March.

During this period, the following inflows and outflows occurred.

Required

Using the information provided, determine what assets Harrier Ltd should recognise and the amounts at which they would be recorded.

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(a) While searching for a suitable block of land, Harrier Ltd placed an option to buy with three real estate agents at a cost of $200 each. One of these blocks of land was later acquired. (b) Payment of option fees (c) Receipt of loan from bank $ 600 800 000 (d) Payment to settlement agent for title search, stamp duties and settlement fees (e) Payment of arrears in rates on building on land (f) Payment for land (g) Payment for demolition of current building on land (h) Proceeds from sale of material from old building (i) Payment to architect (j) Payment to council for approval of building construction (k) Payment for safety fence around construction site (1) Payment to construction contractor for factory building (m) Payment for external driveways, parking bays and safety lighting (n) Payment of interest on loan (0) Payment for safety inspection on building (p) Payment for equipment (q) Payment of freight and insurance costs on delivery of equipment 20 000 10 000 200 000 24 000 11 000 46 000 24 000 6 800 480 000 108 000 80 000 6.000 128 000 11 200 (r) Payment of installation costs on equipment 24 000 (s) Payment for safety fence surrounding equipment 22 000 (t) Payment for removal of safety fence 4 000 (u) Payment for new fence surrounding the factory 16 000 (v) Payment for advertisements in the local paper about the forthcoming factory and its benefits to the local community 1 000 (w) Payment for opening ceremony 12 000 (x) Payments to adjust equipment to more efficient operating levels subsequent to initial operation 6.600