On April 1, 2017, Flounder Company received a condemnation award of $490,200 cash as compensation for...

On April 1, 2017, Flounder Company received a condemnation award of $490,200 cash as compensation for the forced sale of the company’s land and building, which stood in the path of a new state highway. The land and building cost $68,400 and $319,200, respectively, when they were acquired. At April 1, 2017, the accumulated depreciation relating to the building amounted to $182,400. On August 1, 2017, Flounder purchased a piece of replacement property for cash. The new land cost $102,600, and the new building cost $456,000.

Expert Solution

Date	Account Title & Description	Debit ($)	Credit($)
Apr 1,2017	cash	4,90,000
	Accumulated depreciation - building	1,82,400
	Land		68,400
	Building		3,19,200
	Gain on sale of plant assets		2,84,800
	(To Record the Gain on Forced Sale of Land and Building)

Aug 1, 2017	Land	1,02,600
	Building	4,56,000
	cash		5,58,600
	(To Record the Purchase of Land and Building)

ekkarill92 answered 6 months ago

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