During the Year, a Wealthy Local Merchant Donated a Building

question 71

Multiple Choice

During the year, a wealthy local merchant donated a building to the city of Rosewood. The original cost of the building was $300,000. Accumulated depreciation at the date of the gift amounted to $250,000. The appraised fair market value of the donation at the date of the gift was $600,000. At what amount should Rosewood record this donated property in the General Fund?

• A) $50,000.
• B) $300,000.
• C) $600,000.
• D) $0.

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Definitions:

March 31

A specific date marking the end of the first quarter in a calendar year.

Physical Inventory

Physical inventory entails a manual count of all the tangible goods or merchandise kept in a business's possession for the purpose of verifying records and ensuring accuracy in financial statements and records.

Balance Sheet

A financial report that offers a brief overview of a corporation's financial status at a certain moment, detailing the assets, liabilities, and shareholders' equity.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, net income, and earnings per share.