On 1 january 2018, Abc Co purchased assets of XYZ Co at auction for $1,560,000. An independent appraisal of the fair value of the assets acquired is listed below:

Land $171,600

Building $514, 800

Equipment $600,000

Inventories $429,000

On 1 september 2018, ABC Co exchanged land and cash of $8000 for a plant. The land had a book value of $55,000 and a fair value of $60,000. The exchange has commercial susbtance.

On 31 November 2018, ABC co sold equipment for $60,000. The old equipment cost $77,000 and had a book value of $55,000

Required:

I) Prepare the journal entry to record the purchase of the assets in 1 January 2018( show all the working)

II) Prepare the journal entry to record the exchange of assets in 1 September 2018( show all the working)

III) Prepare the journal entry to record the disposition of equipment in 31 November 2018( show all the working)