On April 1, 2017, Ayayai Corp. was awarded $450,000 cash as compensation for the forced sale of its land and building, which were directly in the path of a new highway. The land and building cost $60,000 and $280,000, respectively, when they were acquired. At April 1, 2017, the accumulated depreciation for the building amounted to $195,000. On August 1, 2017, Ayayai purchased a piece of replacement property for cash. The new land cost $200,000 and the new building cost $540,000. The new building is estimated to have a useful life of 20 years, physical life of 30 years, residual value of $270,000, and salvage value of $75,000. Ayayai prepares financial statements in accordance with IFRS

REQUIRED:

Prepare any journal entry required at December 31, 2017, under (1) IFRS and (2) ASPE.

1) IFRS

Debit:

Credit:

2) ASPE

Debit:

Credit:

*NOTE: There are only two accounts per entry and you can use only the following accounts:

-Gain on Disposal of Building

-Land

-No Entry

-Depreciation Expense

-Cash

-Accumulated Depreciation - Buildings

-Buildings*