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On January 1, 2018, XYZ Company paid $380,000 to purchase land, building, and equipment. The market...

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Accounting

On January 1, 2018, XYZ Company paid $380,000 to purchase land,building, and equipment. The market values of these assets on thatdate were: land $60,000; building $200,000; equipment $140,000.Before the property could be used, XYZ Company had to spend $5,000to put the equipment in working order. The building was assigned auseful life of 20 years with a $4,000 salvage value. The buildingwill be depreciated using the straight-line method. On October 1,2028, XYZ Company sold the building for $73,000 cash. Calculate theamount of the loss recorded on the sale of the building.

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3.8 Ratings (408 Votes)
Amount of the loss recorded on the sale of the building 17025 Working Land Building Equipment Total Fair Value 6000000 20000000 14000000 40000000 Lumpsum amount paid 38000000 Allocation of lumpsum amount in ratio of Fair value 5700000 19000000 13300000 38000000 Add Additional    See Answer
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