Chapter 9, Problem 4PB

a)

To determine

Prepare the journal entries for each of the disposal transaction.

b)

To determine

Explain whether the gains and losses recorded in the requirement (a) affect the gross profit reported in B Construction’s income statement or not.

c)

To determine

Explain the way that the financial reporting of gains and losses on plant assets differs from the financial reporting of unrealized gains and losses on marketable securities.