Smith and Jones each owns tracts of land. Because of the location of their current operations, each would prefer to have the other's land. Smith and Jones agree to exchange tracts. Smith pays Jones $36,000 based upon the following data.

Smith Land Jones Land
Original cost $270,000 $280,000
Appraised fair value 300,000 264,000 at date of exchange

Instructions
(a) Prepare the journal entry to record the exchange on Smith's books, assuming the transaction has commercial substance.
(b) Prepare the journal entry to record the exchange on Smith's books, assuming the transaction does not have commercial substance.
(c) Prepare the journal entry to record the exchange on Jones's books, assuming the transaction has commercial substance.
(d) Prepare the journal entry to record the exchange on Jones's books, assuming the transaction does not have commercial substance.

A factory works on standard costing system. The standard estimates of material for the manufacture of 1000 units of a commodity are 400 kg at Rs. 2.50 per kg. When 2000 units of a commodity are manufactured, it is found that 820 kgs of material is consumed at Rs. 2.60 per kg. Calculate the material variance