In 2017,Graham Cracker Co

question 24

Essay

In 2017,Graham Cracker Co.sells a building with a cost of $10 million and undepreciated capital cost (UCC)of $5 million for tax purposes.For financial reporting,the building has carrying amount of $7 million.The sale price of the building is $3 million.Aside from the sale of the building,the company has other income (before taxes)of $5 million.There are no other permanent or temporary differences.The company faces an income tax rate of 30%.
Required:
Provide the journal entries for the company for 2017.

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Definitions:

Accounts Receivable Balance

The total amount of money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Accounts Payable Period

The average number of days it takes for a business to pay its suppliers, indicative of the company's payment policies and cash flow management.

Quarterly Sales

The total revenue a company generates from its business activities during a specific three-month period of the fiscal year.

Purchase Price

The amount of money paid to acquire a product or service.