Q1) On April 1, 2007, Gloria Estefan Company received condemnation award of $430,000 cash as compensation for forced sale of company's land and building, that stood in path of new highway. Land and building cost $60,000 and $280,000, respectively, when they were acquired At April 1, 2007, accumulated depreciation relating to building amounted to $160,000. On August 1,2007, Estefan bought a piece of replacement property for cash. New land cost $90,000, and new building cost $400,000.
Create journal entries to record transactions April1 and August 1, 2007.