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Problem 2 On May 1, 20x3, Cara Inc, acquired land and a building for its...

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Problem 2 On May 1, 20x3, Cara Inc, acquired land and a building for its new head office at a cost of $840,000. Cara was pleased because the land and the building had appraised values of 300,000 and $700,000, respectively. Additional costs associated with the acquisition included legal fees of S4,000 and back taxes owing on the property of $6,000. On December 31,20x3, Cara also paid $2,500 to repair the building's furnace. The building has an expected useful life of 20 years with no residual value, and Cara uses straight-line depreciation for its capital assets Required a Prepare the journal entries to record the acquisition of the land and the building on b On July 1,20x5, Cara was offered $900,000 for its land and building and decided May 1, 20s3 and all journal entries related to the land and the building orn December 31, 20x3 to sell them and move to a less expensive location. Prepare all journal entries required in 20x5 relating to the land and building

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