Disposition Land
$40,000 --
$31,000 $31,000
Condemnation Building
15,000
-- 3,600 --
Demolition Warehouse
70,000
$16,000
74,000
74,000
Destruction by fire Machine
8,000
2,800
900
7,200 Trade-in Furniture
10,000
7,850 --
3,100
Contribution Automobile 9,000
3,460
2,960
2,960 Sale The following additional information is available. Land: On
February 15, a condemnation award was received as consideration for
unimproved land held primarily as an investment, and on March 31,
another parcel of unimproved land to be held as an investment was
purchased at a cost of $35,000. Building: On April 2, land and building
were purchased at a total cost of $75,000, of which 20% was allocated to
the building on the corporate books. The real estate was acquired with
the intention of demolishing the building, and this was accomplished
during the month of November. Cash proceeds received in November
represent the net proceeds from demolition of the building. Warehouse:
On June 30, the warehouse was destroyed by fire. The warehouse was
purchased January 2, 2014, and had depreciated $16,000. On December
27, the insurance proceeds and other funds were used to purchase a
replacement warehouse at a cost of $90,000. Machine: On December 26,
the machine was exchanged for another machine having a fair value of
$6,300 and cash of $900 was received. (The exchange lacks commercial
substance.) Furniture: On August 15, furniture was contributed to a
qualified charitable organization. No other contributions were made or
pledged during the year. Automobile: On November 3, the automobile
was sold to Jared Winger, a stockholder. Instructions P10-6 (LO1,3)
(Interest During Construction) Grieg Landscaping began construction of
a new plant on December 1, 2017. On this date, the company purchased
a parcel of land for $139,000 in cash. In addition, it paid $2,000 in
surveying costs and $4,000 for a title insurance policy. An old dwelling
on the premises was demolished at a cost of $3,000, with $1,000 being
received from the sale of materials. Architectural plans were also
formalized on December 1, 2017, when the architect was paid $30,000.
The necessary building permits costing $3,000 were obtained from the
city and paid for on December 1 as well. The excavation work began