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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.

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