Aye Corp acquired land and a building on June 1, 2013 for $13,000,000. An expert in real estate appraisal estimates that the land is worth 40% of the total purchase price. The building is estimated to have a useful life of 25 years and a residual value of $450,000. On September 1, 2023, Aye moved and sold the property for $17,000,000. The buyer and seller agreed that 50% of the proceeds should be allocated to land. Aye depreciates buildings using the straight-line method, and has a December 31 year-end. Aye records partial depreciation in the year of acquisition or disposal based on the number of months the asset is available for use in the year.
Prepare the entry to record the purchase on June 1, 2013, depreciation expense for 2013 and
2014, and all entries required to record the disposal of the property on September 1, 2023.

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The Answer of Aye Corp acquired land and a building on June 1, 2013 for $13,000,000. An expert in real estate appraisal estimates that the land is worth 40% of the total purchase price. The building is estimated to have a useful life of 25 years and a residual value of $450,000. On September 1, 2023, Aye moved and sold the property for $17,000,000. The buyer and seller agreed that 50% of the proceeds should be allocated to land. Aye depreciates buildings using the straight-line method, and has a December 31 year-end. Aye records partial depreciation in the year of acquisition or disposal based on the number of months the asset is available for use in the year.
Prepare the entry to record the purchase on June 1, 2013, depreciation expense for 2013 and
2014, and all entries required to record the disposal of the property on September 1, 2023.

Aye Corp Acquired Land and a Building on June 1