Response to the following problem:
Create the journal entry - 1031 exchange with no cash involved.
Sold prop A and it was on the books at $100.00 with accum depre of $50.00. Bought property appraised at $300.00, costs on sale of $25.00. Goal DR CR -
Property A $100.00
Accum Depre $50.00
Sale Costs $25.00
Property B $75.00
So if the entry is correct, a purchased building with an appraised value of $300.00, would then be recorded on the books at $75.00? Really?