Macmulk purchased a new facility to run its operations. The total cost of the space was $1,719,000. The facility had the following significant components: Land, building, electrical, roof, interior fixtures, HVAC. The total fair value of the land was estimated to be $780,000. The building was estimated to be approximately 40% of the total purchase price. The remaining price was determined to be equally attributable to the other components, including: HVAC, Roof, Electrical and other.

Macmulk paid $10,400 in property taxes that were in arrears on the date of the purchase. The total estimated property taxes for the year are $6,050.

In order to prepare the facility for use, management was required to perform a major inspection on the HVAC unit and electrical. This was required in order to obtain operating permits. In order to stay in operation, the inspection must be completed every 4 years and costs $25,000. Macmulk reports under IFRS.

Required:

1. Prepare the journal entries to record the above transactions.

2. Discuss the accounting for the major inspection under IFRS and ASPE.