Short Answer Problems

1- Petes Pizzeria buys a new building to expand their business. The building has a cash cost of $125,000. Repairs to the building in order to ring it up to code for sale cost $6,000. Attorneys fees are $4500 and the real estate commission and transfer taxes are $7000. What will be the cost of the property on Petes books?

2- Sunray company sells equipment that cost $15,000 and has accumulated depreciation of $8,000 for a cash price of $10,000. Will the company realize a gain or loss on the sale? Record the journal entry for the sale.