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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:

  1. Loss of $975,000.
  2. Loss of $1,000,000.
  3. Loss of $1,015,000.
  4. Loss of $1,025,000
  5. Loss of $1,035,000

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