Ramirez sold land and a building for 900,000 receiving $100,000 cash and a five year 9% note receivable for the remaining balance. Ramirez records show the following amount
Land $50,000
Bldg $550,000
Accumulated Dep: Building at the date of disposal $250,000

I don't understand how I am suppose to write this out. I need this ASAP homework due tomorrow
Thanks

Ramirez sold land and a building for 900,000 receiving $100,000 cash and a five year 9% note receivable for the remaining balance. Ramirez records show the following amount
Land $50,000
Bldg $550,000
Accumulated Dep: Building at the date of disposal $250,000

I dont understand how I am suppose to write this out. I need this ASAP homework due tomorrow
thanks

You have to calculate the gain on disposal and carry this to a gain on disposal account whilst zeroing the various balances for the assets and the depreciation at the same time you must record the cash received and the new asset in the form of a receivable