Polar Sold a Building to Icecap on January 1, 2017

question 104

Essay

Polar sold a building to Icecap on January 1, 2017 for $112,000, although the book value of this asset was only $70,000 on that date.The building had a five-year remaining useful life and was to be depreciated using the straight-line method with no salvage value.
Required:
For the consolidated financial statements for 2018, determine the balances that would appear for the following accounts: (i) Buildings (net); (ii) Operating expenses; and (iii) Net income attributable to the noncontrolling interest.

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Definitions:

Proposed Tax

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Recreation Center

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The exchange of votes among legislators or members of a voting body to ensure mutual support for their respective proposals or interests.

Logrolling

A practice in politics where individuals or parties exchange support for each other's proposals or legislation, often regardless of the merits of the involved issues.