On April 1, 2015, Pavlova Company received a condemnation award of ($410),000 cash as compensation for the

Question:

On April 1, 2015, Pavlova Company received a condemnation award of \($410\),000 cash as compensation for the forced sale of the company’s land and building, which stood in the path of a new highway. The land and building cost \($60\),000 and \($280\),000, respectively, when they were acquired. At April 1, 2015, the accumulated depreciation relating to the building amounted to \($160\),000. On August 1, 2015, 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 April 1 and August 1, 2015.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Intermediate Accounting IFRS Edition

ISBN: 9781118443965

2nd Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

Question Posted: