Respuesta :
The gain (or loss) recorded on the building sale -100,000.
Adjusted basis of building = 1,000,000 – 300,000 = 700,000
Sale price = 600,000
It is loss as basis is higher than selling price.
Loss on sale = 600,000 – 700,000 = -100,000
Straight-Line Method: This is the maximum usually used technique for calculating depreciation. In order to calculate the cost, the distinction among the asset's price and the anticipated salvage cost is split with the aid of using the overall quantity of years a organisation expects to apply it.
Under the revaluation technique, a ready individual values the organization's belongings on the stop of every economic yr. and the depreciation are calculated with the aid of using deducting the cost on the stop of the yr. from the cost at the start of the yr. The reason of depreciation is to symbolize a correct cost of belongings at the books. Every yr., as belongings are used, their values are decreased at the stability sheet and expensed at the earnings statement.
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