prepare the journal entry to record the transaction. Assume that at no time prior to the transaction did the asset qualify as a held for sale asset. All transactions occur on December 31, 2016.

Landolfi Inc. owns a property that has a carrying value on December 31, 2016, of $520,000 (cost $950,000, accumulated depreciation $430,000).

Required:

For each of the following independent situations, prepare the journal entry to record the transaction. Assume that at no time prior to the transaction did the asset qualify as a held for sale asset. All transactions occur on December 31, 2016.

a. The property was sold to Paz Inc. for $450,000.

b. The local government expropriated the property to provide land for an expansion of the rapid rail transit line. Compensation of $750,000 was paid to Landolfi Inc.

c. Due to a toxic mould problem, the property was deemed unsafe for use and was abandoned. Management does not believe there is any possibility of selling the property or recovering any amount from it.

d. Landolfi Inc. donated the property to the local government for use as a future school site. At the time of the donation, the fair value of the property was $600,000.

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