Answered

Get clear, concise, and accurate answers to your questions on IDNLearn.com. Ask anything and receive well-informed answers from our community of experienced professionals.

On October 31, 20X5, West Company received a condemnation award of $450,000 as compensation for the forced sale of a warehouse. On this date the warehouse, including the land on which it was situated, had a book value of $275,000. During December 20X5, West purchased a parcel of land for a new warehouse site at a cost of $125,000. West should report on its income statement for the year ended December 31, 20X5, a gain on condemnation of property of

Sagot :

Abiolataiwo2015idn

Answer:

$175,000

Explanation:

Calculation to determine West should report on its income statement for the year ended December 31, 20X5, a gain on condemnation of property of

Using this formula

Gain on condemnation=Compensation for the forced sale-Book value

Let plug in the formula

Gain on condemnation=$450,000-$275,000

Gain on condemnation=$175,000

Therefore what should report on its income statement for the year ended December 31, 20X5, a gain on condemnation of property of $175,000

We are happy to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. Your search for solutions ends here at IDNLearn.com. Thank you for visiting, and come back soon for more helpful information.