Valix Finacc vol 1 Problem 16-21

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 16 Problem 16-21

1. Building                                                                                      10,500,000

            Cash                                                                                                          10,500,000

2. Depreciation                                                                                  200,000

            Accumulated depreciation                                                                           200,000 

3. Building                                                                                        3,000,000

            Cash                                                                                                            3,000,000

           

    Accumulated depreciation (2,500,000 / 50 x 2)                              100,000

    Loss on retirement of building                                                     2,400,000

            Cash                                                                                                            2,500,000

4. Depreciation (10,700,000 – 500,000 / 48)                                         212,500

            Accumulated depreciation                                                                           212,500

     Building (10,500,000 + 3,000,000 – 2,500,000)                                                      11,000,000

     Accumulated depreciation (400,000 – 100,000)                                                     300,000

     Book value – 1/1/2008                                                                                       10,700,000