1. On July 6, Craig acquired the plant assets of Desbury Company, which had discontinued operations....

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1. On July 6, Craig acquired the plant assets of Desbury Company, which had discontinued operations. The property was appraised by a reliable, independent valuator on the date of acquisition as follows: Land Building-structure Building HVAC Machinery Total 550,000 1,500,000 175,000 725,000 2,950,000 Craig gave 18,000 of its common shares in exchange. The most recent sale of Craig's common shares took place last month, when 5,000 shares were sold for $170 per share. 2. Craig had the following cash expenses between July 6 and December 15, the date when it first occu[1]pied the building: Renovations and refurbishments of building 98,000 Construction of bases for machinery to be installed later 110,000 Driveways and parking lots 131,000 Remodelling of office space in building, including new partitions and walls Special assessment by city on land 59,000 16,000 On December 20, Craig purchased machinery for $305,000, subject to a 2% cash discount, and paid freight on the machinery of $14,000. The machine was dropped while being placed in position, which resulted in paying the supplier for repairs costing $12,500. The company paid the supplier on the day that the machinery was received, and recorded the purchase of machinery net of any discount. Instructions a. Prepare the entries for these transactions on Craig's books. Craig prepares financial statements in accordance with IFRS. b. Would the journal entries for item 1 prepared in part (a) differ if Craig prepared financial statements in accordance with ASPE? c. Prepare the entry for the purchase and payment of the machinery in item 2, assuming the discount was not taken. C. Machinery Repairs and Maintenan Finance Expense Cash 312,900 12,500 6,100 331,500 1. On July 6, Craig acquired the plant assets of Desbury Company, which had discontinued operations. The property was appraised by a reliable, independent valuator on the date of acquisition as follows: Land Building-structure Building HVAC Machinery Total 550,000 1,500,000 175,000 725,000 2,950,000 Craig gave 18,000 of its common shares in exchange. The most recent sale of Craig's common shares took place last month, when 5,000 shares were sold for $170 per share. 2. Craig had the following cash expenses between July 6 and December 15, the date when it first occu[1]pied the building: Renovations and refurbishments of building 98,000 Construction of bases for machinery to be installed later 110,000 Driveways and parking lots 131,000 Remodelling of office space in building, including new partitions and walls Special assessment by city on land 59,000 16,000 On December 20, Craig purchased machinery for $305,000, subject to a 2% cash discount, and paid freight on the machinery of $14,000. The machine was dropped while being placed in position, which resulted in paying the supplier for repairs costing $12,500. The company paid the supplier on the day that the machinery was received, and recorded the purchase of machinery net of any discount. Instructions a. Prepare the entries for these transactions on Craig's books. Craig prepares financial statements in accordance with IFRS. b. Would the journal entries for item 1 prepared in part (a) differ if Craig prepared financial statements in accordance with ASPE? c. Prepare the entry for the purchase and payment of the machinery in item 2, assuming the discount was not taken. C. Machinery Repairs and Maintenan Finance Expense Cash 312,900 12,500 6,100 331,500