On February 1, 2024, the Xilon Corporation issued 40,000 shares of its no-par common stock in exchange for five acres of land located in the city of Monrovia. On the date of the acquisition, Xilons common stock had a fair value of $14 per share. An office building was constructed on the site by an independent contractor. The building was completed on November 2, 2024, at a cost of $6,100,000. Xilon paid $4,050,000 in cash and the remainder was paid by the city of Monrovia.

1. Assuming that Xilon prepares its financial statements according to U.S. GAAP, prepare the journal entries to record the acquisition of the land and the building.

2. Assuming that Xilon prepares its financial statements according to International Financial Reporting Standards, select all the correct alternatives the company has for recording the acquisition of the office building. Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.

check all that apply

• Same treatment as GAAP.
• Deduct the amount of the grant in determining the initial cost of the office building.
• Record the grant as a liability, deferred income, in the balance sheet and recognize it in the income statement systematically over the office

Required information [The following information applies to the questions displayed below.] On February 1, 2024, the Xilon Corporation issued 40,000 shares of its no-par common stock in exchange for five acres of land located in the city of Monrovia. On the date of the acquisition, Xilon's common stock had a fair value of $14 per share. An office building was constructed on the site by an independent contractor. The building was completed on November 2, 2024, at a cost of $6,100,000. Xilon paid $4,050,000 in cash and the remainder was paid by the city of Monrovia. Required: 1. Assuming that Xilon prepares its financial statements according to U.S. GAAP, prepare the journal entries to record the acquisition of the land and the building. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Required information [The following information applies to the questions displayed below.] On February 1, 2024, the Xilon Corporation issued 40,000 shares of its no-par common stock in exchange for five acres of land located in the city of Monrovia. On the date of the acquisition, Xilon's common stock had a fair value of $14 per share. An office building was constructed on the site by an independent contractor. The building was completed on November 2, 2024, at a cost of $6,100,000. Xilon paid $4,050,000 in cash and the remainder was paid by the city of Monrovia. Assuming that Xilon prepares its financial statements according to International Financial Reporting Standards, select all the correct ternatives the company has for recording the acquisition of the office building. ote: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct nswer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark ill be automatically graded as incorrect. Same treatment as GAAP. Deduct the amount of the grant in determining the initial cost of the office building. Record the grant as a liability, deferred income, in the balance sheet and recognize it in the income statement systematically over the office building's useful life. Required information [The following information applies to the questions displayed below.] On February 1, 2024, the Xilon Corporation issued 40,000 shares of its no-par common stock in exchange for five acres of land located in the city of Monrovia. On the date of the acquisition, Xilon's common stock had a fair value of $14 per share. An office building was constructed on the site by an independent contractor. The building was completed on November 2, 2024, at a cost of $6,100,000. Xilon paid $4,050,000 in cash and the remainder was paid by the city of Monrovia. Required: 1. Assuming that Xilon prepares its financial statements according to U.S. GAAP, prepare the journal entries to record the acquisition of the land and the building. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Required information [The following information applies to the questions displayed below.] On February 1, 2024, the Xilon Corporation issued 40,000 shares of its no-par common stock in exchange for five acres of land located in the city of Monrovia. On the date of the acquisition, Xilon's common stock had a fair value of $14 per share. An office building was constructed on the site by an independent contractor. The building was completed on November 2, 2024, at a cost of $6,100,000. Xilon paid $4,050,000 in cash and the remainder was paid by the city of Monrovia. Assuming that Xilon prepares its financial statements according to International Financial Reporting Standards, select all the correct ternatives the company has for recording the acquisition of the office building. ote: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct nswer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark ill be automatically graded as incorrect. Same treatment as GAAP. Deduct the amount of the grant in determining the initial cost of the office building. Record the grant as a liability, deferred income, in the balance sheet and recognize it in the income statement systematically over the office building's useful life