effective interest method. Donations 10.36 Company I receives a building as a donation and spends $5,000 making it ready for use. At the time of the donation, the building had a FMV of $95,000. Prepare the entry for the donation and the $5,000 expenditure. 10.37 Company J donates a building to charity. The FMV and book value are $48,000 and $55,000, respectively. Prepare the required entries. I 240 PROPERTY, PLANT, AND EQUIPMENT [CHAP 10