(L06) (Disposition of Assets) On April 1, 2017, Gloria Estefan Company received a condemnation award of $430,000 cash as compensation for the forced sale of the company’s land and building, which stood in the path of a new state highway.

The land and building cost $60,000 and $280,000, respectively, when they were acquired. At April 1, 2017, the accumulated depreciation relating to the building amounted to $160,000. On August 1, 2017, Estafan purchased a piece of replacement property for cash. The new land cost $90,000, and the new building cost $400,000.

Instructions Prepare the journal entries to record the transactions on April 1 and August 1, 2017.