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Markus Company received two donations during the year. A long - term client donated a piece of artwork from his personal art collection to display
Markus Company received two donations during the year. A longterm client donated a piece of artwork from his personal art collection to display in the companys entranceway as a thankyou for all of the years the company had completed work for him immediately. The artwork was appraised at $ Markus also received a vacant building as a donation from the municipality, who no longer wanted to be responsible for operating costs. The building has a year estimated remaining useful life $ residual value which was recognized in the donation agreement. Transfer costs of $ were paid by the company. The building originally cost $ years earlier. The building was recently appraised at $ market value by the municipalitys tax assessor. Anticipating occupancy within the next days, the company spent $ for repairs and internal rearrangements, and is expected to have value for years. There are no unresolved contingencies about the building and Markuss permanent occupancy.
Required:
Give all entries for Markus related to a the donations, b the renovation, and c any depreciation at the end of the first year of occupancy, assuming that Markus records donations at fair value and uses straightline depreciation. If no entry is required for a transactionevent select No journal entry required" in the first account field.
What would appear on the SCF in relation to the transactions recorded in requirement Cash outflows and deductible values should be indicated by minus sign.
This part of the question is not part of your Connect assignment.
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