P10.4B (LO 1,3,5) (Dispositions, Including Condemnation, Demolition, and Trade-in) Presented below is a schedule of property...
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P10.4B (LO 1,3,5) (Dispositions, Including Condemnation, Demolition, and Trade-in) Presented below is a schedule of property dispositions for Blue Co. Schedule of Property Dispositions Cost Accumulated Depreciation Cash Fair Nature of Proceeds Value Disposition Land $56,000 $75,000 $ 75,000 Condemnation Building 150,000 $30,000 161,000 161,000 Fire loss Warehouse 26,000 0 2,500 0 Demolition Machine 25,000 20,000 500 6,600 Trade-in Furniture 6,000 Automobile 25,000 2,000 10,200 3,500 3,500 Sale 0 12,000 Contribution The following additional information is available: Land: On April 20, a condemnation award was received as consideration for unimproved land held primarily as an investment, and on May 31, another parcel of unimproved land to be held as an investment was purchased at a cost of $61,000. Building: On February 28, the building was destroyed by fire. The building was purchased January 2, 2017, and had depreciated $30,000. On December 27, the insurance proceeds and other funds were used to purchase a replacement building at a cost of $200,000. Warehouse: On July 1, land and an old warehouse were purchased at a total cost of $104,000, of which 25% was allocated to the warehouse on the corporate books. The real estate was acquired with the intention of demolishing the warehouse, and this was accomplished during the month of August. Cash proceeds received in August represent the net proceeds from demolition of the warehouse. Machine: On November 26, the machine was exchanged for another machine having a fair value of $6,100 and cash of $500 was received. (The exchange lacks commercial substance.) Furniture: On September 12, the furniture was sold to the CFO. Automobile: On December 4, the automobile was contributed to a qualified charitable organization. No other contributions were made or pledged during the year. P10.4B (LO 1,3,5) (Dispositions, Including Condemnation, Demolition, and Trade-in) Presented below is a schedule of property dispositions for Blue Co. Schedule of Property Dispositions Cost Accumulated Depreciation Cash Fair Nature of Proceeds Value Disposition Land $56,000 $75,000 $ 75,000 Condemnation Building 150,000 $30,000 161,000 161,000 Fire loss Warehouse 26,000 0 2,500 0 Demolition Machine 25,000 20,000 500 6,600 Trade-in Furniture 6,000 Automobile 25,000 2,000 10,200 3,500 3,500 Sale 0 12,000 Contribution The following additional information is available: Land: On April 20, a condemnation award was received as consideration for unimproved land held primarily as an investment, and on May 31, another parcel of unimproved land to be held as an investment was purchased at a cost of $61,000. Building: On February 28, the building was destroyed by fire. The building was purchased January 2, 2017, and had depreciated $30,000. On December 27, the insurance proceeds and other funds were used to purchase a replacement building at a cost of $200,000. Warehouse: On July 1, land and an old warehouse were purchased at a total cost of $104,000, of which 25% was allocated to the warehouse on the corporate books. The real estate was acquired with the intention of demolishing the warehouse, and this was accomplished during the month of August. Cash proceeds received in August represent the net proceeds from demolition of the warehouse. Machine: On November 26, the machine was exchanged for another machine having a fair value of $6,100 and cash of $500 was received. (The exchange lacks commercial substance.) Furniture: On September 12, the furniture was sold to the CFO. Automobile: On December 4, the automobile was contributed to a qualified charitable organization. No other contributions were made or pledged during the year.
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