The following is a schedule of property dispositions for

Shangari #2168
The following is a schedule of property dispositions for Shangari

The following is a schedule of property dispositions for Shangari Corp.:

The following additional information is available:

Land

On February 15, land that was being held mainly as an investment was expropriated by the city.
On March 31, another parcel of unimproved land to be held as an investment was purchased at
a cost of $35,000.

Building

On April 2, land and a building were purchased at a total cost of $75,000, of which 20% was
allocated to the building on the corporate books. The real estate was acquired with the intention
of demolishing the building, which was done in November. Cash proceeds that were received in
November were the net proceeds from the building demolition.

Warehouse

On June 30, the warehouse was destroyed by fire. The warehouse had been purchased on
January 2, 2014, and accumulated depreciation of $16,000 had been properly recorded. On
December 27, the insurance proceeds and other funds were used to purchase a replacement
warehouse at a cost of $90,000.

Machine

On December 26, the machine was exchanged for another machine having a fair market value
of $6,300. Cash of $900 was also received as part of the deal.

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 Furniture

On August 15, furniture was contributed to a registered charitable organization. No other

contributions were made or pledged during the year.

Automobile

On November 3, the automobile was sold to Jared Dutoit, a shareholder.

Instructions

(a) Prepare the entries to record the transactions and indicate how these items would be
reported on the income statement of Shangari Corp. Assume that Shangari follows ASPE, but
also indicate if the reporting would be treated differently under IFRS.

(b) As a current creditor of Shangari Corp., if you noted that there are several dispositions of
property, plant and equipment, would you have any concerns or questions for management?

The following is a schedule of property dispositions for Shangari

ANSWER
http://paperinstant.com/downloads/the-following-is-a-schedule-of-property-dispositions-for-
shangari/

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