ACME Incorporate had the following transactions during the year: 1. Acquired a piece of remote...
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ACME Incorporate had the following transactions during the year: 1. Acquired a piece of remote desert land as a testing site for new heat and drought resistant seeds in exchange for 8,000 common shares. An appraisal is not available due to the remote nature of the land, and the shares are trading on the TSX at $8.00 per share ( $64,000 fair value). ( 2 marks) 2. Exchanged specialized drilling equipment (cost $800,000, accumulated depreciation $300,000, appraised value unavailable due to the specialized nature) plus $5,000 cash for descaling equipment with an appraised value of $350,000. Assume the transaction lacks commercial substance. (4 marks) Required: prepare the journal entries to record the abpeve transactions. Please show calculations below each journal entry, and dates are not required
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