The following is a schedule of property dispositions for Shangari
The following is a schedule of property dispositions for Shangari Corp.:
The following additional information is available:
On February 15, land that was being held mainly as an investment was expropriated by the city. On March 31, another parcel of unimproved land to be held as an investment was purchased at a cost of $35,000.
On April 2, land and a building were purchased at a total cost of $75,000, of which 20% was allocated to the building on the corporate books. The real estate was acquired with the intention of demolishing the building, which was done in November. Cash proceeds that were received in November were the net proceeds from the building demolition.
On June 30, the warehouse was destroyed by fire. The warehouse had been purchased on January 2, 2011, and accumulated depreciation of $16,000 had been reported. On December 27, the insurance proceeds and other funds were used to purchase a replacement warehouse at a cost of $90,000.
On December 26, the machine was exchanged for another machine having a fair market value of $6,300. Cash of $900 was also received as part of the deal.
On August 15, furniture was contributed to a registered charitable organization. No other contributions were made or pledged during the year.
On November 3, the automobile was sold to Jared Dutoit, a shareholder.
Prepare the entries to record the transactions and indicate how these items would be reported on the income statement of Shangari Corp. Assume that Shangari follows ASPE, but also indicate if the reporting would be treated differently under IFRS.
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