Crane Limited buys land from its president for $590,000 in cash, which is the land's appraised value at the time of the purchase. The land was purchased by the president 15 years ago for $58,000.

(a1)

Assume that Crane follows ASPE. Prepare the journal entry to record the purchase of the land

Textile manufacturer Sunland Corp. exchanges robotic equipment with an original cost of $20,000 and a carrying amount of $12,900 with the equipment rental company Marigold Corp. The equipment that is received in exchange from Marigold Corp. has an original cost of $35,000 and a carrying amount of $15,900, performs different functions, and has a fair value of $21,200. Both companies are 100% owned by the same individual. Because they are closely held companies, they both follow ASPE.

Prepare the journal entries for both companies to record the exchange

-extile manufacturer Sunland Corp. exchanges robotic equipment with an original cost of $29,600 and a carrying amount of $12,700 with the equipment rental company Marigold Corp. The equipment that is received in exchange from Marigold Corp. has an original cost of $38,100 and a carrying amount of $16,250, performs different functions, and has a fair value of $21,800. Because they are closely held companies, they both follow ASPE.

Prepare the journal entries for both companies to record the exchange if it were arm's-length?

-Textile manufacturer Cullumber Corp. exchanges robotic equipment with an original cost of $20,900 and a carrying amount of $11,750 with the equipment rental company Riverbed Corp. The equipment that is received in exchange from Riverbed Corp. has an original cost of $40,000 and a carrying amount of $16,000, performs different functions, and has a fair value of $21,500. The individual shareholder owned only 40% of the shares of each company. Because they are closely held companies, they both follow ASPE. Assume that there is independent evidence to support the value of the computer software.

Prepare the journal entries for both companies to record the exchange