Exercise 10-14 Information for Pharoah Ltd. follows: 1. On July 6, Pharoah 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 $ 585,000 Buildingstructure 2,710,000 BuildingHVAC 178,000 Machinery 727,000 Total $ 4,200,000 Pharoah gave 24,000 of its common shares in exchange. The most recent sale of Pharoah's common shares took place last month, when 5,100 shares were sold for $180 per share. 2. Pharoah had the following cash expenses between July 6 and December 15, the date when it first occupied the building: Renovations and refurbishments of building $ 103,000 Construction of bases for machinery to be installed later 134,000 Driveways and parking lots 128,000 Remodelling of office space in building, including new partitions and walls 66,100 Special assessment by city on land 24,900 On December 20, Pharoah purchased machinery for $260,000, subject to a 4% cash discount, and paid freight on the machinery of $16,100. The machine was dropped while being placed in position, which resulted in paying the supplier for repairs costing $21,700. The company paid the supplier on the day that the machinery was received, and recorded the purchase of machinery net of any discount.Prepare the entries for these transactions on the books of Pharoah Ltd. Pharoah prepares financial statements in accordance with IFRS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 2.Prepare the entry for the purchase and payment of the machinery in item 2, assuming the discount was not taken. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 1.