Reference no: EM132921272

Question - Monty Ltd. owned several manufacturing facilities. On September 15 of the current year, Monty decided to sell one of its manufacturing buildings. The building had cost $5,000,000 when originally purchased 6 years ago, and had been depreciated using the straight-line method with no residual value. Monty estimated that the building had a 20-year life when purchased.

1. What is the journal entry to record the sale of the building on Monty's books, assuming 6 years of depreciation has already been recorded in the accounts to the date of disposal. The building was sold for $3,750,000 cash.

2. What is the journal entry to record the sale of the building on Monty's books, assuming 6 years of depreciation has already been recorded in the accounts to the date of disposal. The building was sold for $3,500,000 cash.

3. What is the journal entry to record the sale of the building on Monty's books, assuming 6 years of depreciation has already been recorded in the accounts to the date of disposal. The building was sold for $3,340,000 cash.