Required information

$[$The following information applies to the questions displayed below.$]$

On February $1,2024,$ the Xilon Corporation issued $45,000$ 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 $$20$ 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 $$6,600,000.$ Xilon paid $$4,300,000$ 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

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.

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.