In 2006 tyr inc purchased a warehouse for 295000 this year


In 2006, TYR Inc. purchased a warehouse for $295,000. This year, the corporation sold the warehouse to Firm D for a cash payment of $80,000 and D’s assumption of a $225,000 mortgage. Through date of sale, TYR claimed $72,000 of straight-line depreciation on the warehouse.

a) Compute TYR’s recognized gain on the sale of the warehouse.

b) What is the character of the gain?

 

c) Would your answers change if TYR is a non corporate business?

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Financial Accounting: In 2006 tyr inc purchased a warehouse for 295000 this year
Reference No:- TGS01206030

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