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P10-4 Dispositions, Including Condemnation, Demolition, and Trade-In Schedule of Property Answer

P10-4 Dispositions, Including Condemnation, Demolition, and Trade-In Schedule of Property Answer

P10-4 Dispositions, Including Condemnation, Demolition, and Trade-In
P10-4 Dispositions, Including Condemnation, Demolition, and Trade-In SCHEDULE OF PROPERTY DISPOSITIONS COST ACCUMULATED DEPRECIATION CASH PROCEEDS FAIR VALUE NATURE OF DISPOSITION Land $40,000 – $31,000 $31,000 Condemnation Building $15,000 – $3,600 – Demolition Warehouse $70,000 $16,000 $74,000 $74,000 Destruction by Fire Machine $8,000 $2,800 $900 $7,200 Trade-In Furniture $10,000 $7,850 – $3,100 Contribution Automobile $9,000 $3,460 $2,960 $2,960 Sale Additional Information: Land- On February 15, a condemnation award was received as consideration for unimproved land held primarily as an investment, and on March 31, antoerh parcel of unimproved land to be held as an investment was purchased for $35,000 Building: On April 2, land and building were purchased at a total cost of $75,000, of which 20% was allocated to the building on the corporate books. The real estate was acquired with the intention of demolishing the building, and this was accomplished during the month of November. Cash proceeds received in November represented the net proceeds from the demolition of the building. Warehouse: On June 30, the warehouse was destroyed by fire. The warehouse was purchased Jan 2, 2011, and had depreciated $16,000. On December 27, the isurance proceeds and other funds were used to purchase a replacement warehouse at a cost of $90,000. Machine: On December 26, the machine ws exchanged for another machine having a fair value of $6,300 and cash of $900 was received. (the exchange lacks commercial substance.) Furniture: On August 15, furniture was contributed to a qualified charitable organization. No other contributions were made or pledged during the year. Automobile: On November 3, the automobile was sold to Jared Winger, a stockholder. Indicate how these items would be reported on the income statement of Hollerith Co.

SCHEDULE OF PROPERTY DISPOSITIONS
COST ACCUMULATED DEPRECIATION CASH PROCEEDS FAIR VALUE NATURE OF DISPOSITION
Land $40,000 – $31,000 $31,000 Condemnation
Building $15,000 – $3,600 – Demolition
Warehouse $70,000 $16,000 $74,000 $74,000 Destruction by Fire
Machine $8,000 $2,800 $900 $7,200 Trade-In
Furniture $10,000 $7,850 – $3,100 Contribution
Automobile $9,000 $3,460 $2,960 $2,960 Sale
Additional Information:
Land- On February 15, a condemnation award was received as consideration for unimproved land held primarily as an investment, and on March 31, antoerh parcel of unimproved land to be held as an investment was purchased for $35,000

Building: On April 2, land and building were purchased at a total cost of $75,000, of which 20% was allocated to the building on the corporate books. The real estate was acquired with the intention of demolishing the building, and this was accomplished during the month of November. Cash proceeds received in November represented the net proceeds from the demolition of the building.
Warehouse: On June 30, the warehouse was destroyed by fire. The warehouse was purchased Jan 2, 2011, and had depreciated $16,000. On December 27, the isurance proceeds and other funds were used to purchase a replacement warehouse at a cost of $90,000.
Machine: On December 26, the machine ws exchanged for another machine having a fair value of $6,300 and cash of $900 was received. (the exchange lacks commercial substance.)
Furniture: On August 15, furniture was contributed to a qualified charitable organization. No other contributions were made or pledged during the year.
Automobile: On November 3, the automobile was sold to Jared Winger, a stockholder.
Indicate how these items would be reported on the income statement of Hollerith Co.

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P10-4 Dispositions, Including Condemnation, Demolition, and Trade-In Schedule of Property

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