A company had a forklift destroyed in a flood. The forklift originally cost $150,000, and the accumulated depreciation on it was $90,000. The company received insurance proceeds of $80,000. What gain or loss should the company recognize? a. a gain of $80,000 b. a gain of $20,000 c. a loss of $20,000 d. a gain of $60,000 e. a loss of $60,000
A company had a forklift destroyed in a flood. The forklift originally cost $150,000, and the accumulated depreciation on it was $90,000. The company received insurance proceeds of $80,000. What gain or loss should the company recognize? a. a gain of $80,000 b. a gain of $20,000 c. a loss of $20,000 d. a gain of $60,000 e. a loss of $60,000
Chapter2: Income Tax Concepts
Section: Chapter Questions
Problem 59P
Related questions
Question
What is the correct option? ? General accounting question please solve fast
Transcribed Image Text:A company had a forklift destroyed in a flood. The forklift
originally cost $150,000, and the accumulated depreciation on it
was $90,000. The company received insurance proceeds of
$80,000.
What gain or loss should the company recognize?
a. a gain of $80,000
b. a gain of $20,000
c. a loss of $20,000
d. a gain of $60,000
e. a loss of $60,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you