Information for Ivanhoe Ltd. follows: 1. On July 6, Ivanhoe 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: $ 546,000 2,539,000 Land Building--structure Building-HVAC Machinery Total 176,000 759,000 $ 4,020,000 Ivanhoe gave 23,000 of its common shares in exchange. The most recent sale of Ivanhoe's common shares took place last month, when 7,800 shares were sold for $180 per share. 2 Ivanhoe had the following cash expenses between July 6 and December 15, the date when it first occupied the building: Renovations and refurbishments of building Construction of bases for machinery to be installed later Driveways and parking lots Remodelling of office space in building, including new partitions and walls Special assessment by city on land $ 106,000 137.000 124,000 64,800 20,500 On December 20, Ivanhoe purchased machinery for $260.000, subject to a 3% cash discount and paid freight on the machinery of $16,700. The machine was dropped while being placed in position, which resulted in paying the supplier for repairs costing 512,300. 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 Ivanhoe Ltd. Ivanhoe 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 for the amounts.) No. Account Titles and Explanation Debit Credit 1. Land 546000 Buildings - Structure 2539000 Buildings - HVAC 176000 Machinery Machinery Land Improvements Land Cash (To record purchase of property 2. Machinery Cash (To record purchase of property) 2. Machinery Repairs and Maintenance Expense Cash (To record purchase of machinery)