Stone Corporation reported the following information: $\begin{array}{lll}
& 2017 &{2016} \
\text { Buildings (net) } & \$ 950,000& 425,000 \
\text { Cash received from sale of building } & 250,000 \
\text { Gain on sale of building } & 35,000 \
\text { Cost of building purchased during 2017 } & 870,000
\end{array}$ What amount of amortization was recorded on the building sold in 2017?

Question

Stone Corporation reported the following information: $\begin{array}{lll} 
& 2017 &{2016} \
\text { Buildings (net) } & \$ 950,000& 425,000 \
\text { Cash received from sale of building } & 250,000 \
\text { Gain on sale of building } & 35,000 \
\text { Cost of building purchased during 2017 } & 870,000
\end{array}$ What amount of amortization was recorded on the building sold in 2017?

Quizplus · Accepted Answer

The building sold in 2017 was purchased in 2016 for $425,000 and sold for $250,000, resulting in a loss of $175,000. The gain on the sale of the building was $35,000, so the total loss on the sale was $140,000. The building was depreciated by $130,000 during the time it was owned by Stone Corporation.

Stone Corporation Reported the Following Information What Amount of Amortization Was Recorded on the Building Sold