Question
Martinex's forestland was condemned for use as a national park. The carrying amount of the forestland was $100,000. Compensation for the condemnation was $150,000. Martinex
Martinex's forestland was condemned for use as a national park. The carrying amount of the
forestland was $100,000. Compensation for the condemnation was $150,000. Martinex purchased
similar, but larger, replacement forestland for
$200,000.
As a result of the condemnation and
replacement, what is the net effect on the carrying amount of the forestland reported in Martinex's
Balance Sheet?
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Financial Accounting Information For Decisions
Authors: Robert W. Ingram, Bruce Baldwin
4th Edition
0324069545, 978-0324069549
