On January 1, 2025, Bridgeport Corporation sold a building that cost $264,310 and that had accumulated depreciation of $101,310 on the date of sale. Bridgeport received as consideration a $254,310 non-interest-bearing note due on January 1, 2028. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2025, was 9 %. At what amount should the gain from the sale of the building be reported? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The amount of gain should be reported
On January 1, 2025, Bridgeport Corporation sold a building that cost $264,310 and that had accumulated depreciation of $101,310 on the date of sale. Bridgeport received as consideration a $254,310 non-interest-bearing note due on January 1, 2028. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2025, was 9 %. At what amount should the gain from the sale of the building be reported? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The amount of gain should be reported
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2025, Bridgeport Corporation sold a building that cost $264,310 and that had accumulated depreciation of
$101,310 on the date of sale. Bridgeport received as consideration a $254,310 non-interest-bearing note due on January 1, 2028.
There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a
note of this type on January 1, 2025, was 9%. At what amount should the gain from the sale of the building be reported? (Round
factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
The amount of gain should be reported
$
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