SouthCo owns a building that has a carrying value on April 30, 2015 of $420,000 (cost $820,000, accumulated depreciation $400,000) For each of the following independent situations, prepare the journal entry to record the transaction Assume that at no time prior to the transaction did the asset qualify as a held for sale asset All transactions occur on April 30, 2015 Enter an appropriate description when entering the transactions in the journal Dates must be entered in the format dd mmm (ie January 15 would be 15 Jan) Please make sure your final answer(s) are accurate to 2 decimal places The building was sold to XYZ Corporation for $360,000 Due to a toxic mould problem, the building was deemed unsafe for use and was abandoned Management does not believe there is any possibility of selling the building or recovering any amount from it SouthCo donated the building to the local government for use as a future school site At the time of the donation, the fair value of the building was $460,000 The local government expropriated the building to provide land for an expansion of the rapid rail transit line Compensation of $520,000 was paid to SouthCo

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 12, 2024

SouthCo owns a building that has a carrying value on April 30, 2015 of $420,000 (cost $820,000, accumulated depreciation $400,000). For each of the following

SouthCo owns a building that has a carrying value on April 30, 2015 of $420,000 (cost $820,000, accumulated depreciation $400,000). For each of the following independent situations, prepare the journal entry to record the transaction. Assume that at no time prior to the transaction did the asset qualify as a held for sale asset. All transactions occur on April 30, 2015. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). Please make sure your final answer(s) are accurate to 2 decimal places.

The building was sold to XYZ Corporation for $360,000.
Due to a toxic mould problem, the building was deemed unsafe for use and was abandoned. Management does not believe there is any possibility of selling the building or recovering any amount from it.
SouthCo donated the building to the local government for use as a future school site. At the time of the donation, the fair value of the building was $460,000.
The local government expropriated the building to provide land for an expansion of the rapid rail transit line. Compensation of $520,000 was paid to SouthCo.