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On 13 September 2001, Nitish Corps board of directors moved the companys operations into a newly constructed building and declared its old building available for

On 13 September 2001, Nitish Corps board of directors moved the companys operations into a newly constructed building and declared its old building available for sale. The original cost of the old building was $36 million; it was 30% depreciated. Other information is as follows:

  • On 15 September, a professional appraisal of the old building estimated its value as $19 million.
  • On 24 September, Nitish engaged a commercial property developer to place the building on the market for $19 million. Despite some softness in the market the developer expects to be able to sell the building within the next nine months. The developer charges a commission of 4% on final sale.
  • By 31 December, the commercial real estate market had softened considerably. Although the developer held the official asking price at $19 million, Nitish and the developer agreed they would consider offers as low as $17.5 million.
  • Despite receiving several lowball offers from prospective buyers over the first two months of 2002, Nitishs management did not accept any of the offers.
  • By 31 March 2002, the end of Nitishs first reporting quarter, the market had improved considerably. The developer relisted the property at $20.5 million, its newly appraised value.
  • On 27 April 2002, Nitishs board accepted an offer of $20.7 million.

Required: Prepare the appropriate general journal entries to record the information above. If no entry is required, simply state that.

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