SALE OF ASSETS. In order to provide capital for new hotel construction in other locations, Wilton Hotel Corporation has decided to sell its hotel in Pierre, South Dakota. Wilton auctions the hotel and its contents on October 1, 19x7, with the following results:

An appraisal suggests that the land has a fair value of $600,000 and that the building has a fair value of $300,000. (Auction prices sometimes differ from fair value estimates because of variations in market conditions or imperfections in the auction market.) Wilton’s accounting records reveal the following information about the assets sold:

REQUIRED:
Prepare the journal entry to remove the assets sold from Wilton’s accounting records.
Record a separate gain or loss for each asset sold, and support your entry with appropriate computations.

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Land and building Furniture and fixtures Supplies CASH PROCEEDS $720,000 120,000 25,000