On April 1, 2017, Flounder Company received a condemnation awardof $490,200 cash as compensation for the forced sale of thecompany’s land and building, which stood in the path of a new statehighway. The land and building cost $68,400 and $319,200,respectively, when they were acquired. At April 1, 2017, theaccumulated depreciation relating to the building amounted to$182,400. On August 1, 2017, Flounder purchased a piece ofreplacement property for cash. The new land cost $102,600, and thenew building cost $456,000.
