Question
Teal Ltd. owned several manufacturing facilities. On September 15 of the current year, Teal decided to sell one of its manufacturing buildings. The building had
Teal Ltd. owned several manufacturing facilities. On September 15 of the current year, Teal decided to sell one of its manufacturing buildings. The building had cost $6,350,000 when originally purchased 5 years ago, and had been depreciated using the straight-line method with no residual value. Teal estimated that the building had a 25-year life when purchased.
Prepare the journal entry to record the sale of the building on Teal's books, assuming 5 years of depreciation has already been recorded in the accounts to the date of disposal. The building was sold for $5,080,000 cash.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started