The City of Wheat Ridge (a local governmental body) sells a building for $1 million in cash to the Jefferson County Red Cross Chapter (a Not-for-Profit Organization).

a) Show the transaction as it would appear on the Citys modified accrual transaction sheet. Assume it is a General Fund transaction.

b) Show the transaction as it would appear for the Red Cross.

c) If the Red Cross borrowed money to buy the building, show the transaction of the first years loan repayment of $150,000 ($100,000 interest and $50,000 principal).

d) The Red Cross utilizes the straight-line method of depreciation for its property, plant and equipment. Given a useful life of 20 years for the building and no salvage value, show the transaction that would be recorded at the end of the second year they own the building.