On January 1, 2020, Company X purchased two pieces of equipment.

i. The first piece of equipment was acquired from Company Y by paying $10,000 on the purchase date and signing a noninterest bearing note requiring nine annual installments of $10,000 (with the first payment due on January 1, 2021). An interest rate of 10% is reasonable in this situation.

ii. To purchase the second piece of equipment, Company X gave Company Z 1,000 shares of $10 par common stock which had a fair value of $20 on 1/1/2020. What is cost capitalized for the two pieces of equipment? Prepare the journal entry on January 1, 2020.

iii. (IFRS): Assume that the second piece of equipment had a book value of $18,000 on December 31, 2020, while the fair value on that date was determined to be $19,500. Prepare the journal entries required under IFRS, assuming Company X uses the revaluation model.