7. The president of Dozier Corporation donated a building to Mandy Corporation. The building had an original cost of $200,000, a book value of $75,000, and a fair market value of $180,000. To record this donation, Mandy would a. make a memorandum entry b. debit Building for $75,000 and credit Gain for $75,000 c. debit Building for $200,000 and credit Gain for $200,000 d. debit Building for $180,000 and credit Gain for $180,000
7. The president of Dozier Corporation donated a building to Mandy Corporation. The building had an original cost of $200,000, a book value of $75,000, and a fair market value of $180,000. To record this donation, Mandy would a. make a memorandum entry b. debit Building for $75,000 and credit Gain for $75,000 c. debit Building for $200,000 and credit Gain for $200,000 d. debit Building for $180,000 and credit Gain for $180,000
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 42P
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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![7. The president of Dozier Corporation donated a building to Mandy Corporation. The building had an
original cost of $200,000, a book value of $75,000, and a fair market value of $180,000. To record this
donation, Mandy would
a. make a memorandum entry
b. debit Building for $75,000 and credit Gain for $75,000
c. debit Building for $200,000 and credit Gain for $200,000
d. debit Building for $180,000 and credit Gain for $180,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F19e225f3-966b-4564-81d7-779f061bdc36%2F2f38227a-83a9-45c9-80ec-fce28108faa3%2Fph1gbh5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:7. The president of Dozier Corporation donated a building to Mandy Corporation. The building had an
original cost of $200,000, a book value of $75,000, and a fair market value of $180,000. To record this
donation, Mandy would
a. make a memorandum entry
b. debit Building for $75,000 and credit Gain for $75,000
c. debit Building for $200,000 and credit Gain for $200,000
d. debit Building for $180,000 and credit Gain for $180,000
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