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Ski Lodge Inc. purchased a building for $20 million. The building is depreciated using the straight-line method over 20 years and has no residual value.
Ski Lodge Inc. purchased a building for $20 million. The building is depreciated using the straight-line method over 20 years and has no residual value. At the end of year 16, Ski Lodge Inc. sold the building for $5 million in cash. Depreciation had been updated to the point in time of the sale. Show the accounting equation effects from this transaction. Also, write down the journal entry from the disposal.
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