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On January 1,2025 , Waterway Corporation sold a building that cost $259,320 and that had accumulated depreciation of $102,520 on the date of sale. Waterway
On January 1,2025 , Waterway Corporation sold a building that cost $259,320 and that had accumulated depreciation of $102,520 on the date of sale. Waterway received as consideration a $249,320 non-interest-bearing note due on January 1, 2028 . There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1,2025, was 9%. At what amount should the gain from the sale of the building be reported? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The amount of gain should be reported $ (b) On January 1, 2025, Waterway Corporation purchased 311 of the $1,000 face value, 9%,10-year bonds of Walters Inc. The bonds mature on January 1,2035, and pay interest annually beginning January 1,2026. Waterway purchased the bonds to yield 11%. How much did Waterway pay for the bonds? (Round factor values to 5 decimal ploces, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
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