PUNTER VERSION RA BENE Exercise 10-23 Sunland Holdings to a pubidy listed company in Canada, ventured into construction of a megeshopping mall in Edmonton, which is rated as the largest shopping mall in North America. The company's board of Directors, after much market research, decided that instead of selling the shopping mall to a local investor who had approached them everal times with excellent offers that he steadily increased during the year of construction, the company would hold this property for the purposes of capital appreciation and caring rental income frem mall tenants. The construction of the mall ended on December 31, 2019, Sunland Holdings retained the services of a real estate company to find and attract many important retailers to rent space in the shopping mall. The shooping mall was Rally occupied soon after construction was completed According to the company's accounting department, the total corvitruction cost of the shopping mall was 568 million. The company is an independent appraiser to determine the maale value annually. According to the appraisal, the air values of the shopping mall at December 31, 2020, and at each subsequent your end were 2020 $60 milion 2021 $78 million 3003 182 milion 2023 $76 million The Independent appraiser felt that the useful life of the shopping mall was 20 vears and its residual value was million Note that the malls tentat Income and expenses would be the same and thus can be omitted from the analysis for this exercise Prepare the necessary Journal entries for 2021 2022 and 2022 if it decides to treat the shopping mall as an investment property under LAS 10: Use Tall valor model (Cradle account titles automatically indented when the amount is entered. Do not Indent manually. If no entry is required select "No Entry for the account titles and coter o for the amounts Record Journal entries in the order presented in the problem. Enter amounts in dollars instead of million dollars Date Account Titles and Explanation Debit Credit E4 Backup: Kiese, Intermediate Accounting, 12C Heel System Announcements WINTER VERLETON EXT HOW LIST OF ACCOUNTS LINK TO TEXT Prepare the necessary Journal entries for 2021 2022 and 2023 if it decides to treat the shopping mall as an investment property unde LAS 10: Use the cost model (Crouilt accu titles are automatically indented when the amount is entered. Do not Indent manually. If no entry is rooled, select "Norry for the account titles and enter for the amounts. Record journal entries in the order presented in the problem. En amounts la dolor id of million dollars) Date Account Titles and Explanation Debit Credit Exercise 10-7 Oriole Manufacturing Inc. is installing a new plant at its production facility. It has incurred these costs: Cost of the manufacturing plant (cost per supplier's involce plus non-recoverable taxes) Initial delivery and handling costs Cost of site preparation Consultants used for advice on the acquisition of the plant Interest charges paid to supplier of plant (indirect financing charges for amounts borrowed by supplier) Estimated dismantling costs to be incurred after seven years Operating losses before commercial production Determine which costs Oriole Manufacturing Inc. can capitalize in accordance with TAS 16. According to IAS 16, following costs can be capitalized: $2,520,000 205,000 606,000 710,000 208,000 301,000 406,000 Exercise 10-23 Sunland Holdings in a publicly listed company in Canada, ventured into construction of a mega-shopping mall in Edmonton, which is rated as the largest shopping mall in North America. The company's board of directors, after much market research, decided that instead of selling the shopping mall to a local investor who had approached them several times with excellent offers that he steadily increased during the year of construction, the company would hold this property for the purposes of capital appreciation and earning rental income from mal tenants. The construction of the mall ended on December 31, 2019. Sunland Holdings retained the services of a real estate company to find and attract many important retailers to rent space in the shopping mall. The shopping mall was fully occupied soon after construction was completed. According to the company's accounting department, the total construction cost of the shopping mall was $65 milion. The company used an independent appraiser to determine the mal's fair value annually. According to the appraisal, the fair values of the shopping mall at December 31, 2020, and at each subsequent year and were: 2020 $0 millon 2021 $5 million 2022 382 million 2023 $76 million The Independent prane feat that the useful We of the shopping mall was 20 years and its residual value was $9 milion Note that the mall's rental income and expenses would be the same and thus can be omitted from the analysis for this exercise Prepare the necessary foumal entries for 2021 2022, and 2023 it decides to treat the shopping mall as an Investment property under IAS 40: Use fair value model. (Credit account les are aromatically indented when the amount is entered. Do not inden manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem. Enter amounts in dollars instead of milion dollars.) Datin Account Titles and Explanation Debit Credit PRINTER VERSION HACK NEX SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the necessary journal entries for 2021 2022, and 2023 if it decides to treat the shopping mall as an investment property under IAS 40: Use the cost model (Credit account titles ant automatically Indented when the amount is entered. Do not Indent manually. If na entry is required, select "No Entry for the accountitles and entertec the amounts. Record journal entries in the order presented in the problem. Enter amounts in dollars instead of million dollars.) Date Account Titles and Explanation Debit Credit v Exercise 10-7 Oriole Manufacturing Inc. is installing a new plant at its production facility. It has incurred these costs: Cost of the manufacturing plant (cost per supplier's invoice plus non-recoverable taxes) Initial delivery and handling costs Cost of site preparation Consultants used for advice on the acquisition of the plant Interest charges paid to supplier of plant (indirect financing charges for amounts borrowed by supplier) Estimated dismantling costs to be incurred after seven years Operating losses before commercial production Determine which costs oriole Manufacturing Inc, can capitalize in accordance with IAS 16. According to IAS 16, following costs can be capitalized: $2,520,000 205,000 606,000 710,000 208,000 301,000 406,000