A farmer donated a large tract of land and a building to a community group for use as a recreation center. The agreement provided that the recreation center employ 50 people for 10 years. The land was appraised for $150,000 and the building at $75,000.
Required:
1) Prepare the journal entry to record the acquisition of the land and building.
2) How should the 10 year agreement be reported in the financial statements?

Question

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The Answer of A farmer donated a large tract of land and a building to a community group for use as a recreation center. The agreement provided that the recreation center employ 50 people for 10 years. The land was appraised for $150,000 and the building at $75,000.
Required:
1) Prepare the journal entry to record the acquisition of the land and building.
2) How should the 10 year agreement be reported in the financial statements?

A Farmer Donated a Large Tract of Land and a Building