Question 1 Mushroom Farm Limited (MFL) started operations in January 2020. MFL reports under IFRS. The following activities occurred during the year: 1. On January 31, 2020, the shareholder, Billy Good-Looking, contributed a parcel of land and a building located in Regina to MFL in return for 10,000 common. The land's appraised value was $90,000 while the building's appraised value was $375,000. The value of the common shares is unknown. 2. On September 30, 2020, MFL decided that it needed to move its offices from Regina to Winnipeg. Accordingly, it traded its Regina land and building for a different land and building located in Winnipeg. The appraised value of the Winnipeg land was $115,000 while the appraised value of the Winnipeg building was $450,000. On this date, the Regina land had an appraised value of $125,000 but the value of the Regina building was unknown. The transaction lacks commercial substance. Assume that MFL amortizes its buildings on a declining-balance method at a rate of 6% per year, prorated monthly. REQUIRED 1. Prepare all of the relevant journal entries for the above activities. Your entries should include any relevant adjusting journal entry(ies) at December 31, 2020, MFL's year-end. 2. Assume that for item #2, MFL entered the transaction as previously described and that MFL paid an additional $75,000. If the transaction was considered to have commercial substance, what would be the appropriate journal entry? Assume that the appraised value of the Winnipeg land is more reliable than the appraised value of the Regina land