In Year T, Chevrolet (a vehicle manufacturer) sold one of it…
In Year T, Chevrolet (a vehicle manufacturer) sold one of its plants to another automotive company. Chevrolet had paid $13,000,000 for the plant where $7,000,000 of the payment related to the land and the remaining $6,000,000 of the payment was for the plant building on the land. Over the time that it owned the plant, Chevrolet, claimed $2,2000,000 of accumulated depreciation on the building. The other automotive company paid Chevrolet $20,000,000 for the plant where $8,000,000 of the purchase price was allocated to the land and the remaining $12,000,000 was for the plant building. The building and land were the only two assets the company sold during the year. Further, assume the company had no prior unrecaptured net Sec. 1231 losses in any prior years.What is the total amount of the gain (or loss) on the sale overall in Year T? If it is a gain, include it as a positive value. If it is a loss, put a negative sign (-) in front of the value.Fill in the blank: __________Answer: