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On January 1, 2010, Fishbone Corporation sold a building that cost $250,000 and that had accumulated depreciation of $100,000 on the date of sale. Fishbone received as consideration a $240,000 noninterest-bearing note due on January 1, 2013. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2010, was 9%. At what amount should the gain from the sale of the building be reported?
On January 1, 2010, Fishbone Corporation sold a building that cost $250,000 andthat had accumulated depreciation of $100,000 on the date of sale. Fishbonereceived as consideration a $240,000…
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