In order to provide capital for new hotel construction in other locations, Wilton Hotel Corporation has decided to sell its hotel in Pierre, South Dakota. Wilton auctions the hotel and its contents on October 1, 2011, with the following results:
Land.......... $600,000
Building ......... 225,000
Furniture ......... 120,000
Wilton€™s accounting records reveal the following information about the assets sold:

Required:
1. Prepare a separate journal entry to record the disposition of each of these assets.
2. Explain how the disposals of the fixed assets above would affect the current period financial statements.

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Acquisition Accumulated Depreciation Asset Land Building Furniture Cost 55,000 350,000 $155,000 285,500 133,000