A Corporation follows a policy of a 10% depreciation charge per year on all machinery and a 5% depreciation charge per year on buildings. The following transactions occurred in 2019:

March 31, 2019 Negotiations which began in 2018 were completed and a warehouse purchased 1/1/10 (depreciation has been properly charged through December 31, 2018) at a cost of 3,200,000 with a fair value of 2,000,000 was exchanged for a second warehouse which also had a fair value of 2,000,000. The exchange had NO COMMERCIAL SUBSTANCE. Both parcels of land on which the warehouses were located were equal in value, and had a fair value equal to book value.

June 30, 2019 Machinery with a cost of 240,000 and accumulated depreciation through January 1 of 180,000 was exchanged with 150,000 cash for a parcel of land with a fair value of 230,000. The exchange had COMMERCIAL SUBSTANCE.

Prepare all appropriate journal entries for the Corporation for the above dates.

In June 30, 2019 the Corporation wold have to record

Select one:

a. Land ..................................................................... 230,000 Accumulated DepreciationMachinery.............................. 180,000 Gain on Disposal.............................................. 20,000 Machinery.......................................................... 240,000 Cash..................................................................... 150,000

b. Land ..................................................................... 210,000 Accumulated DepreciationMachinery.............................. 180,000 Machinery.................................................... 240,000 Cash................................................................ 150,000

c. Land ..................................................................... 198,000 Accumulated DepreciationMachinery.............................. 192,000 Machinery...................................................... 240,000 Cash................................................................... 150,000

d. I want to leave this question blank

e. Land ..................................................................... 230,000 Accumulated DepreciationMachinery.............................. 192,000 Gain on Disposal.......................................... 32,000 Machinery......................................................... 240,000 Cash..................................................................... 150,000