Intermediate Accounting

Serene Hotels LLC has entered into an agreement to purchase a Restaurant from Marriott hotels LLC at a negotiated lumpsum price of OMR 500,000. On surveying the market, it has been observed that the assets (Furniture, land and building) fair value is as follows: Furniture = OMR 20,000, Hotel Equipment = OMR 300,000 and Building = OMR 150,000 Furniture was not in a good condition so it has been discarded by the company on 31st December 2020 . Hotel equipment was used for few years and on September 30th2021, it has been sold by the company for OMR 200,000. At the time of sale, the accumulated depreciation was OMR 90,000 and cost price were OMR 300,000. Building was very old so business has decided to exchange building on 31st October 2021 , having cost price of OMR 200,000 and accumulated depreciation of OMR 20,000 and with cash payment of OMR 120,000 with another newly built building worth OMR 400,000. Required: How the allocation of the business purchased by the serena hotels LLC will be done and how the related accounting procedure and discarding, sale and exchange of the assets will be performed