Presented below is a schedule of property dispositions for Frank Thomas Co.

| September 10, 2018

Presented below is a schedule of property
dispositions for Frank Thomas Co.

Schedule of Property Dispositions

Accumulated

Cash

Fair Market

Nature of

Cost

Depreciation

Proceeds

Value

Disposition

Land

$40,000

$31,000

$31 ,000

Condemnation

Building

15,000

__

3,600

_

Demolition

Warehouse

70,000

$11,000

74,000

74,000

Destruction by fire

Machine

8,000

3,200

900

7,200

Trade-in

Furniture

10,000

7,850

3,100

Contribution

Automobile

8,000

3,460

2,960

2,960

Sale

February 15, a condemnation award was
received as consideration for unimproved land held prima-as an investment, and
on March 31, another parcel of unimproved land to be held as an investmentis purchased at a cost
of $35,000.

Building
– April 2, land and building were
purchased at a total cost of $75,000, of which 20% was allocated to”–•building on the
corporate books. The real estate was acquired with the intention of demolishing
the.
;lding, and this was accomplished during the month of November. Cash proceeds
received in Novemberresent the net proceeds from demolition of the building.

Warehouse
3n June 30, the warehouse was
destroyed by fire. The warehouse was purchased January 2, 2004, and:-.jdepreciated $11,000.
On December 27, the insurance proceeds and other funds were used to purchaseplacement warehouse at
a cost of $90,000.

Machine
December 26, the machine was
exchanged for another machine having a fair market value of $6,300:-nd cash of $900 was
received. (The exchange lacks commercial substance.)

Furniture
August 15, furniture was
contributed to a qualified charitable organization. No other contributions –
ere made or pledged during the year.

Automobile
November 3, the automobile was
sold to Ozzie Guillen, a stockholder.

Instructions
Indicate how these items would be
reported on the income statement of Frank Thomas Co.(AICPA adapted)

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