On April 1, 2014, Clark Company received a condemnation award of $375,000 cash as compensation for the forced sale of the company's land and building, which stood in the path of a new state highway. The land and building cost $50,000 and $350,000, respectively, when they were acquired. At April 1, 2014, the accumulated depreciation relating to the building amounted to $125,000. On August 1, 2014, Clark purchased a piece of replacement property for cash. The new land cost $70,000, and the new building cost $525,000.
Instructions
Prepare the journal entries to record the transactions on April 1 and August 1, 2014.