Current Attempt in Progress Skysong Brothers Inc. purchased land and an old building with the intention of removing the old building and then constructing the company's new corporate headquarters on the land. The land and old building were purchased for $565,000. Closing costs were $6,540. The old building was removed at a cost of $45,900. After readying the land for its intended use, and while waiting for construction to begin, Skysong generated net revenue of $3,270 from using the land as a parking lot. Determine the amount to be recorded as the land cost, and the treatment of the net revenue of $3,270, if Skysong prepares financial statements in accordance with (a) IFRS and (b) ASPE. Land cost $ IFRS The net revenue of $3,270 should be $ ASPE IFRS Capitalized and credited to Buildings account ASPE Recognized as income when earned
Current Attempt in Progress Skysong Brothers Inc. purchased land and an old building with the intention of removing the old building and then constructing the company's new corporate headquarters on the land. The land and old building were purchased for $565,000. Closing costs were $6,540. The old building was removed at a cost of $45,900. After readying the land for its intended use, and while waiting for construction to begin, Skysong generated net revenue of $3,270 from using the land as a parking lot. Determine the amount to be recorded as the land cost, and the treatment of the net revenue of $3,270, if Skysong prepares financial statements in accordance with (a) IFRS and (b) ASPE. Land cost $ IFRS The net revenue of $3,270 should be $ ASPE IFRS Capitalized and credited to Buildings account ASPE Recognized as income when earned
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please provide correct and complete answer with all work and steps answer in text form thanks

Transcribed Image Text:Current Attempt in Progress
Skysong Brothers Inc. purchased land and an old building with the intention of removing the old building and then constructing the
company's new corporate headquarters on the land. The land and old building were purchased for $565,000. Closing costs were
$6,540. The old building was removed at a cost of $45,900. After readying the land for its intended use, and while waiting for
construction to begin, Skysong generated net revenue of $3,270 from using the land as a parking lot.
Determine the amount to be recorded as the land cost, and the treatment of the net revenue of $3,270, if Skysong prepares financial
statements in accordance with (a) IFRS and (b) ASPE.
Land cost $
IFRS
The net revenue of $3,270
should be
$
ASPE
IFRS
Capitalized and credited to Buildings account V
ASPE
Recognized as income when earned
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