The president of Dozier Corporation donated a building to Mandy Corporation. The

Question

The president of Dozier Corporation donated a building to Mandy Corporation. The building had an original cost of $200,000, a book value of $85,000, and a fair market value of $160,000. To record this donation, Mandy would

a.

make a memorandum entry

b.

debit Building for $85,000 and credit Gain for $85,000

c.

debit Building for $200,000 and credit Gain for $200,000

d.

debit Building for $160,000 and credit Gain for $160,000

a.

make a memorandum entry

b.

debit Building for $85,000 and credit Gain for $85,000

c.

debit Building for $200,000 and credit Gain for $200,000

d.

debit Building for $160,000 and credit Gain for $160,000

Explanation / Answer

Debit Building for $160,000 and credit Gain for $160,000 Option D is correct

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