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Norman Corp. has the following account balances related to land and a building as of November 1, 2021: Debit Credit Land $ 500,000 Building $
Norman Corp. has the following account balances related to land and a building as of November 1, 2021:
| Debit | Credit |
Land | $ 500,000 |
|
Building | $ 6,000,000 |
|
Accumulated Depreciation (through 9/1/21) |
| $ 5,000,000 |
The building was purchased several years ago and has been used in the business ever since.
In November of 2021, the following transactions occurred related to the building:
- On November 1, the building was demolished at the cost of $25,000 cash.
- On November 5, scrap metal generated from the demolishment was sold for $10,000 cash.
- On November 30, Norman Corp. recorded the full disposal of the building.
The November 30 journal entry should include a:
- Loss of $975,000.
- Loss of $1,000,000.
- Loss of $1,015,000.
- Loss of $1,025,000
- Loss of $1,035,000
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