I need help figuring out how to solve this problem JE#2,JE#3 and JE#4

Part 3: Property, Plant and Equipment (Due at the end of unit 4, but you will start it in unit 3)

The Company has the following Property, Plant & Equipment at the beginning of January, 2016:

Asset	Purchase Date	Original Cost	Useful Life - Years	Accumulated Depreciation Straight-line	Book Value 12/31/15
Denver, CO - Vacant Land	9/15/2009	$1,610,000			1,610,000
Golden, CO - Land	1/1/2015	$1,280,000			$1,280,000
Golden, CO - Building	1/1/2015	2,175,000	15	(145,000)	2,030,000
Houston, TX - Machinery & Equipment	6/1/2015	425,100	5	(49,595)	375,505

Additionally, the company engaged in the following transactions during 2016:

**Note: these transactions have not yet been recorded. You must create the Journal Entries.

JE#1 - August 31, 2016

Purchased land for $850,000 and constructed a building location: Dallas, Texas. All costs were paid for in cash and construction was completed 8/31/16:

Labor & materials $1,250,000

Architecture fees $18,250

Interest costs capitalized on construction $58,000

Prepaid annual insurance of $14,500 for period: 9/1/16 8/31/12

The building has a useful life of 18 years, straight-line depreciation, $0 Residual Value. For IFRS purposes, the building is revalued on an annual basis.

JE#2 and JE#3- September 30, 2016

Sold the land and building - Golden, Colorado for $3,157,000 cash. Record depreciation through the date of sale, then record the sale. Be sure to make a t-account to keep track of the book value and accumulated depreciation.

JE#4 November 1, 2016

Exchanged the Vacant Land for land and a building in Denver, Colorado. The independent appraised fair value of the land and building were as follows: Land $325,000; Building $1,650,000. The Company paid cash to the other party of $260,000 and paid cash for legal fees of $12,000 (assume the legal fees were attributed to the building) as part of the exchange. In addition, the Company prepaid the annual property tax of $30,000 with Cash. Useful life of the building is 10 years, $0 residual value, and straight-line depreciation. For IFRS purposes, the building is revalued on an annual basis.

JE#5 November 30, 2016

Paid cash of $135,000 for new furniture and fixtures for the new building in Denver, Colorado. Paid sales tax $10,800 and installation costs of $7,500. Useful life is 7 years, $0 residual value, straight-line depreciation.

Adjusting Entries: Year-end information at 12/31/16:

Depreciation	Depreciation Method	Useful life
Building Dallas, Texas	Straight-line	18 years
Building Denver, Colorado	Straight-line	10 years
Furniture & Fixtures Denver, Colorado	Straight-line	7 years
Machinery & Equipment Houston, Texas	Straight-line	5 years

Prepaid Expenses	Date paid	Amount paid
Property Taxes	11/1/2016	$30,000
Insurance	8/31/2016	$14,500

Fair Market Value Year-end information at 12/31/16:

	FMV on 12/31/2016
Building Dallas, Texas	$1,320,000
Building Denver, Colorado	$1,605,000

Requirements in the provided Excel template:

Record General Journal Entries for the PP&E events that occurred during the year. Be sure to record partial year's expenses as appropriate.

Complete the Depreciation Calculation Table. Be sure to pro-rate as necessary.

Complete the Prepaid Expenses Table. Be sure to pro-rate as necessary.

Enter the year-end Adjusting Journal Entries for Depreciation and Prepaid expenses.

Discuss the Fair Value revaluation option for the properties under GAAP and IFRS, and compute the ending book values for the two properties listed.