1:KingbirdIndustries purchased all the following assets and liabilities of Protector Goods for $1,013,000cash:

Book Value Fair Value

Accounts Receivable $128,000 $128,000

Inventory 89,000 97,000

Property, Plant & Equipment (net) 573,000 700,000

Land 144,000 164,000

Accounts Payable 88,000 88,000

Notes Payable 112,000 112,000

Prepare the appropriate journal entries forKingbirdIndustries on acquisition.

2: On September 12,MartinezCompany agreed to an exchange of assets with another company.Martinezgave up a machine with an original cost of $50,000. $31,000in accumulated depreciation had been recorded on this machine over the course ofMartinez's ownership.Martinezdetermined that the machine being given up had a fair value of $18,200.Martinezalso paid $8,000in cash. Assume thatMartinezfollows IFRS and that the transaction has commercial substance.

Prepare the journal entry to record the asset exchange onMartinez's books.

3:RiverbedCorp., a small company that follows ASPE, owns machinery that cost $955,000and has accumulated depreciation of $405,000. The undiscounted future net cash flows from the use of the asset are expected to be $527,000. The equipment's fair value is $445,000. Using the cost recovery impairment model, prepare the journal entry, if any, to record the impairment loss.