A building is purchased on January 1, 2020 for $75,000.00. This building is always expected to have a value of $15,000.00. The useful life of this building is 20 years. Depreciation is recorded at the end of each month. On March 5, 2020, the building caught on fire and was destroyed. The insurance company paid a settlement of $70,000.00. What will be the general journal entry to record this asset disposal?

Answer rating: 100% (QA)

In the scenario you described the building was destroyed by a fire and you received an insurance set... View the full answer