Franks Logistics Ltd is constructing a new warehouse facility in western Sydney near the proposed second airport and adjacent to the M7 freeway. The purchase of the land occurred and warehouse construction commenced on 1 July 2016. It was ready for use on 31 May 2017, and operations commenced on 30 June 2017. Franks incurs a many costs in building the warehouse and it needs to determine those that should be recognised in the cost of the warehouse on initial recognition. These costs include:

Purchase cost of land	$10,000,000
Legal fees on acquisition	$50,000
Stamp duty	$750,000
Auction fees paid by the vendor	$40,000
Demolition of existing structure	$500,000
Bribe paid to local council official for recommending rezoning	$25,000
Cost of CEO salary for time taken to find site	$60,000
Contract payments for the construction of the warehouse (fixed price)	$20,000,000
Contract payments for construction of the warehouse (variations)	$2,000,000
Fines paid for Workcover (OH&S) breaches on the site	$37,500
Interest on $10m loan to purchase the land	$1,200,000
Landscaping of area surrounding warehouse	$90,000
Replanting of trees (landscaping) damaged by street races	$10,000
Purchase of e-tags for trucks	$100,000
Local Government / Council rates for the year	$60,000

Required

1. Calculate the cost for initial recognition of the warehouse and distinguish the costs of land and building.

2. Record journal entries for the purchases of those above assets that you identify in (1) and (2).