On January 1, 2022, Pavlova Company received a notice from the government that a new highway was being built and that land and a building owned by the company were going to be claimed in the process.

The company employed an appraiser and estimated that the land had a fair value of $114,000 and the building had a fair value of $385,000. On April 30, 2022, after some negotiations, Pavlova received a condemnation award of $520,000 cash as compensation for the forced sale of the company’s land and building. The land and building cost $120,000 and $600,000, respectively, when they were acquired. On January 1, 2022, the accumulated depreciation relating to the building amounted to $208,000. On April 30, the accumulated depreciation relating to the building was $210,000. On August 1, 2022, Pavlova purchased a piece of replacement property for cash. The new land cost $90,000, and the new building cost $380,000. 

Instructions

Prepare the journal entries to record the transactions on January 1, April 30, and August 1, 2022.