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On December 31, Your Company has decided to sell one of its buildings. The initial cost of the building was $450 000 with an

On December 31, Your Company has decided to sell one of its buildings. The initial cost of the building was $450 000 with an

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On December 31, Your Company has decided to sell one of its buildings. The initial cost of the building was $450,000 with an accumulated depreciation of $390,000. Depreciation has been taken up to the end of the year. You found a buyer that is willing to purchase the building for $50,000. What is the amount of the gain or loss on this transaction? a. Gain of $20,000 b. Loss of $10,000 c. No gain or loss d. Cannot be determined
Transcribed Image Text:On December 31, Your Company has decided to sell one of its buildings. The initial cost of the building was $450,000 with an accumulated depreciation of $390,000. Depreciation has been taken up to the end of the year. You found a buyer that is willing to purchase the building for $50,000. What is the amount of the gain or loss on this transaction? a. Gain of $20,000 b. Loss of $10,000 c. No gain or loss d. Cannot be determined
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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