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Journal entries for recording transactions of disposition and purchase of asset.
On April 1, 2007, Gloria Estefan Company received a condemnation award of $430,000 cash as compensation for the forced sale of the company's land and building, which stood in the path of a new highway. The land and building cost $60,000 and $280,000, respectively, when they were acquired At April 1, 2007, the accumulated depreciation relating to the building amounted to $160,000. On August 1,2007, Estefan purchased a piece of replacement property for cash. The new land cost $90,000, and the new building cost $400,000.
Prepare the journal entries to record the transactions April1 and August 1, 2007.
The board of directors of the entity receiving the property should guess a value for the property that will serve as a basis for the transaction
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Purpose general journal entries to record the above transactions.
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By accessing this problem Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor.
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