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Question - On December 2, 2014, a HTM investment costing $80,000 was sold for $100,000. The total of the sale proceeds was credited to the investment account. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan).
Required -
a) Prepare the journal entry to correct the error assuming it is discovered on December 31, 2014.
b) Prepare the journal entry to correct the error assuming it is not discovered until January 1, 2015.
In a complete liquidation, Francis receives a building with a fair market value of $100,000, compute gain from the liquidation and basis in the building
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