What is the amount of wrangler gain on the building

Assignment Help Financial Accounting
Reference no: EM132885029

Wrangler, Inc. sold a building and land used for business purposes for a total of $550,000. Wrangler properly allocates the sale price between the building, $350,000, and land, $200,000. Wrangler bought land and building 6 years ago for a total purchase price of $450,000 with $325,000 allocated to the building and $125,000 allocated to the land. Over the years, Wrangler has recognized $50,000 of depreciation.

Problem 1: What is the amount and character of Wrangler's gain or loss on the building and the land?

Reference no: EM132885029

Questions Cloud

Which the journal entry to record the disposal would include : Equipment with a cost of $30 000 and accumulated depreciation of $25,000 was sold for $3 400. The journal entry to record the disposal would include
Prepare the journal entry that jkl ltd would make : Prepare the journal entry that JKL Ltd would make for each of above proposed restructurings. JKL Ltd has financial difficulties and has asked Sang Hang Bank
Tools and techniques used in descriptive analytics : Summarization and statistical tools are used to perform descriptive analytics addressing basic questions of "What happened?" or "What is happening?
Calculate the maximum expense that rubicon can recognize : Calculate the maximum §179 expense that Rubicon can recognize in 2020. Based on the information given what is their Sec 179 carry forward to 2021?
What is the amount of wrangler gain on the building : Wrangler, Inc. sold a building and land used for business purposes. What is the amount and character of Wrangler's gain or loss on the building and the land?
How many flower arrangements must kate sell to break even : How many flower arrangements must Kate sell to break even on operating costs? Kate Rowland wishes to estimate the number of flower arrangements
What is the reorder point for poe corporation : What is the reorder point? Operating days per year - 250. Ordering cost - 5.40/order. Average lead time on purchases - 6 days.
Find number of orders that will be placed during the year : Find Number of orders that will be placed during the year. Mako has projected sales of 72,000 pipes this year, ordering cost of $6 per order, and carrying costs
How much is the amount of non-free trade credit used : Rona Company, Assuming 360 days a year, how much is the amount of "non-free" trade credit used by the firm on the average each year?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Nominal interest rate as return on your investment

A 30- year bond has a face value of $5,000.00 and it pays dividend every 2 months at a nominal interest rate of 12%. You purchased the bond for $4, 800.00 at a given time. After 3 years you decided to sell it. What is your selling price if you earned..

  What is the over-or underapplied variable overhead

Wissota Co. applies overhead based on direct labor hours. The variable overhead standard is 4 hours at $6 per hour. During February, Wissota Co. spent $56,700 for variable overhead. 9,150 labor hours were used to produce 2,400 units. What is the over..

  How much gain should zia inc recognize as a result

On December 31, 2020, Zia Inc. sold its debt instrument at 110. How much gain should Zia Inc. recognize as a result of the disposal?

  Find and prepare journal entries required at december

Prepare journal entries required at December 31,2018 and December 31, 2019, assuming that the inventory is recorded at LCNRV, using a perpetual inventory

  Why the entries are made for the intragroup transactions

Why the above entries are made for the intragroup transaction (T2) as at 30 June 2019, noting the adjustments to each account separately.

  Prepare consolidated financial statements for peony

Assume that Jong used the equity method of accounting for its investment in Nye instead of the cost method.  Calculate the balance of its Investment in Nye account and prepare the consolidated financial statements for Peony at December 31, 20X6 usi..

  Determine the operating profit company

Determine the operating profit Company Y would have earned if it had manufactured and sold 550,000 units in the year.

  Discuss either the pro or con of full financial disclosure

Discuss either the pro or con of full financial disclosure. You must take a position advocating full disclosure and why this is beneficial for the marketplace and the economy or a position arguing that the associated costs of full disclosure outweigh..

  What is the capital spending cash flow of year zero

What is the capital spending cash flow of Year 0 and Year 4? Demiralp, Inc., is planning to set up a new manufacturing plant in New York

  Explain and justify given trend and outline its implications

The above trends suggest an increasing use of sophisticated techniques linked with an increase in  payback. You are required to explain and justify this trend, and outline its implications.

  What is the net advantage to leasing in thousands

Ownership are estimated at $240,000, but this cost would be borne by the lessor if it leases. What is the net advantage to leasing (NAL), in thousands?

  Find how many dollars of new funds are needed to finance

If sales grow by 20 percent next year, determine how many dollars of new funds are needed to finance the growth. (Do not round intermediate calculations.)

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd