What is the journal entry for a rental property with escrow accounts and the bank took the money in the escrow as collateral? In other word , how do I calculate the gain or loss for a business rental real estate property with the escrow accounts
Here are some numbers :
Building : $200,000
Depreciation : $150,000
Mortgage loan : $ 180,000
Escrow account for Insurance/Property Tax : $20,000 ( Mortgage company took the money in the escrow and they will not reimburse them )
How do you calculate the gain/loss from the foreclosed business rental property
Thanks !
