Q2. Syria Corp. exchanged Building 24, which has an appraised value of $ 1,700,000, a cost of $ 2,800,000, and accumulated depreciation of $ 1,300,000, for Building M which belongs to Russia Ltd. Building M has an appraised value of $ 1,620,000, a cost of $ 3,100,000, and accumulated Depreciation of $ 1,750,000. Russia paid Syria the difference between the appraised values of the two buildings. Assume depreciation has been updated to the date of exchange. (20 marks)

Instructions

Prepare the entries on both companies books, assuming the buildings are similar assets.

Comment on the treatment of ASPE versus IFRS differences.