On January 1, 2025, Marigold Corporation sold a building that cost $259,090 and that had accumulated depreciation of $102,230 on the date of sale. Marigold received as consideration a $249,090 non-interest-bearing note due on January 1, 2028. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2025, was 9%. At what amount should the gain from the sale of the building be reported? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The amount of gain should be reported $ 35482
On January 1, 2025, Marigold Corporation sold a building that cost $259,090 and that had accumulated depreciation of $102,230 on the date of sale. Marigold received as consideration a $249,090 non-interest-bearing note due on January 1, 2028. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2025, was 9%. At what amount should the gain from the sale of the building be reported? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The amount of gain should be reported $ 35482
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2025, Marigold Corporation sold a building that cost $259,090 and that had accumulated depreciation of
$102,230 on the date of sale. Marigold received as consideration a $249,090 non-interest-bearing note due on January 1, 2028.
There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a
note of this type on January 1, 2025, was 99%. At what amount should the gain from the sale of the building be reported? (Round
factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
The amount of gain should be reported
eTextbook and Media
$
35482
Transcribed Image Text:(b)
Your answer is incorrect.
On January 1, 2025, Marigold Corporation purchased 324 of the $1,000 face value, 9%, 10-year bonds of Walters Inc. The bonds
mature on January 1, 2035, and pay interest annually beginning January 1, 2026. Marigold purchased the bonds to yield 11%.
How much did Marigold pay for the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0
decimal places, e.g. 458,581.)
Marigold must pay for the bonds
1
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.
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