A company sells a building with a cost of $350,000 and accumulated depreciation of $270,000 and records

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A company sells a building with a cost of $350,000 and accumulated depreciation of $270,000 and records the entry for the sale as follows:

Required
a. Did the company prepare the entry correctly? If not, prepare the correct entry.
b. What would the gain or loss on sale be if the sale price was $97,000?

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Financial ACCT2

ISBN: 978-1111530761

2nd edition

Authors: Norman H. Godwin, C. Wayne Alderman

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Question Posted: Jul 16, 2015 03:07 AM

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A company sells a building with a cost of $350,000 and accumulated depreciation of $270,000 and records

Question:

Cash Loss on Disposal 70,000 10,000 Building 80,000

Step by Step Answer:

a No the company should have reduced the Building account for the 350000 ...View the full answer

Financial ACCT2

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