Kara Ltd. owned several manufacturing facilities. On September 15 of the current year, Kara decided to sell one of its manufacturing buildings. The building had cost $7,920,000 when originally purchased 5 years ago, and had been depreciated using the straight-line method with no residual value. Kara estimated that the building had a 30 year life when purchased.

The journal entry to record the sale of the building on Kara's books, assuming 5 years of depreciation has already been recorded in the accounts the building was sold for $6,750,000 cash.

The journal entry to record the sale of the building on Kara's books, assuming 5 years of depreciation has already been recorded in the accounts the building was sold for $6,600,000 cash.

Prepare the journal entry to record the sale of the building on Kara's books, assuming 5 years of depreciation has already been recorded in the accounts the building was sold for $6,410,000 cash.

Journal Entry Date Accounts Titles and Explanation Credit Sept. 15 Cash 1320000 Building Gain on sale of Building 150000