McNamara Limited purchases land from its president for $390,000 in cash. The land was purchased by the

Question:

McNamara Limited purchases land from its president for $390,000 in cash. The land was purchased by the president 15 years ago for $45,000.
(a) Assume that McNamara follows accounting standards for private enterprises (ASPE). Prepare the journal entry to record the purchase of the land. Use the decision tree in Illustration 23-5 to explain the basis for your answer. What information should be disclosed for this transaction?
(b) How would your answer to part (a) change if McNamara were to follow IFRS?