During the year 20X2, the Foster Company purchased buildings that cost a total of $3,400,000.The Buildings account and the related Accumulated Depreciation were shown in the comparative balance sheets of the company as of December 31, 20X1 and 20X2, as follows:

The company’s income statement for the year 20X2 included the following items:

Depreciation of Buildings ............................ $1,200,000
Gain on Sale of Buildings ............................. $   600,000

Determine the cost of the buildings that were sold during 20X2 and the total amount received from the sale of buildings.

Transcribed Image Text:

Buildings Accumulated Depreciation 20X2 $5,600,000 2,500,000 $3,100,000 20X1 $3,100,000 1,700,000 $1,400,000