Don't give answer in image format Check my workIn 2019, Trader Company acquireda parcel of land for a cashpurchase price of $176,400 withthe intention of building a retailstore in the near future. In late2020, in the midst of the COVID-19crisis, Trader Company was unableto secure the bank financingrequired to begin construction ofthe store as planned. At the time ofthe loan application, the land hadan appraised value of $152,400. In2022, Trader Company eventuallysold the parcel of land for a cashsales price of $185,800 after thelocal real estate market had fullyrecovered.Required:a. At what amount would land bereported in the December 31,2019, balance sheet of TraderCompany?b. At what amount would land bereported in the December 31,2020, balance sheet of TraderCompany?c. Calculate the gain or loss on thesale of land that would bereported in the December 31,2022, income statement of

We know that Land is non depreciable asset. Depreciation is not charged on land. But if the carrying…

Answered: Check my work In 2019, Trader Company…

Check my work In 2019, Trader Company acquired a parcel of land for a cash purchase price of $176,400 with the intention of building a retail

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 19P

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Check my work
In 2019, Trader Company acquired
a parcel of land for a cash
purchase price of $176,400 with
the intention of building a retail
store in the near future. In late
2020, in the midst of the COVID-19
crisis, Trader Company was unable
to secure the bank financing
required to begin construction of
the store as planned. At the time of
the loan application, the land had
an appraised value of $152,400. In
2022, Trader Company eventually
sold the parcel of land for a cash
sales price of $185,800 after the
local real estate market had fully
recovered.
Required:
a. At what amount would land be
reported in the December 31,
2019, balance sheet of Trader
Company?
b. At what amount would land be
reported in the December 31,
2020, balance sheet of Trader
Company?
c. Calculate the gain or loss on the
sale of land that would be
reported in the December 31,
2022, income statement of

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In 2019, Trader Company acquired a parcel of land for a cash purchase price of $175,600 with the intention of building a retail store in the near future. In late 2020, in the midst of the COVID-19 crisis, Trader Company was unable to secure the bank financing required to begin construction of the store as planned. At the time of the loan application, the land had an appraised value of $151,600. In 2022, Trader Company eventually sold the parcel of land for a cash sales price of $184,200 after the local real estate market had fully recovered. Required: a)At what amount would land be reported in the December 31, 2019, balance sheet of Trader Company? b)At what amount would land be reported in the December 31, 2020, balance sheet of Trader Company? c)Calculate the gain or loss on the sale of land that would be reported in the December 31, 2022, income statement of Trader Company
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