Purchase of Real Estate on 3 Statements
I had an interview question that involved purchase of real estate. Question was: if xyz company were to buy a factory. Factory’s, but buyer purchased for 20. How does this of the buyer? Also, say factory depreciates over 5 years, straight line. I said:
Gain +30 (not sold but treated like a gain)
+40 net of depreciation
Asset Change: +15
SE change: +15
Is this right or should answer have been different?