*E10.5 (LO 2, 3, 7, 8) (Asset Acquisition) Hayes Industries Corp. purchased the following assets and also constructed a building. All this was done during the current year using a variety of financing alternatives. Assets 1 and 2 These assets were purchased together for $100,000 cash. The following information was gathered: Initial Cost on Depreciation to Book Value on Appraised Seller's Books Date on Seller's Books Seller's Books Value Machinery $100,000 $50,000 $50,000 $90,000 Equipment 60,000 10,000 50,000 30,000 Asset 3 This machine was acquired by making a $10,000 down payment and issuing a $30,000, two-year, zero-interest-bearing note. The note is to be paid off in two $15,000 instalments made at the end of the first and second years. It was determined that the asset could have been purchased outright for $35,000. Asset 4 A truck was acquired by trading in an older truck that has the same value in use. The newer truck has options that will make it more comfortable for the driver; however, the company remains in the same economic position after the exchange as before. Facts concerning the trade-in are as follows: Cost of truck traded $85,000 Accumulated depreciation to date of exchange 35,000 Fair market value of truck traded 60,000 Cash paid by Hayes 10,000 Fair market value of truck acquired 70,000 Asset 5 Equipment was acquired by issuing 100 common shares. The shares are actively traded and had a closing market price a few days before the equipment was acquired of $9.25 per share. Alternatively, the equipment could have been purchased for a cash price of $900. Instructions a. Finance Hayes uses a variety of alternatives to finance its acquisitions. Record the acquisition of each of these assets, assuming that Hayes prepares financial statements in accordance with IFRS