A fire destroyed 28 of a company's storage units which included stock. If each unit was worth £1,250, and insurance only covers 80%, what is loss incurred by the company?
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A fire destroyed 28 of a company's storage units which included stock. If each unit was worth £1,250, and insurance only covers 80%, what is loss incurred by the company?
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- Assume that on September 30, immediately after this balance sheet was prepared, a tornado completely destroyed one of the barns. This barn had a cost of $14,000 and was not insured against this type of disaster. Explain what changes would be required in your September 30 balance sheet to reflect the loss of this barn.Please explain Pizza corporation factory was destroyed by a hurricane. The fair market value of the factory at the time of the hurricane was $500,000 and its adjusted basis was $750,000. Pizza received insurance proceeds of $620,000, which it used to immediately buy a new factory. What gain or loss will pizza recognize related to the factory in the current year? $120,000 gain $250,000 loss No gain or loss $130,000 lossA copy machine costs $45,000 when new and has accumulated depreciation of $44,000. Suppose Print and Photo Center junks this machine and receives nothing. What is the result of the disposal transaction? a. No gain or loss b. Gain of $1,000 c. Loss of $1,000 d. Loss of $45,000
- Which of the following best describes the IRC $ 165 reportable loss transaction thresholds applicable to corporations? a. Single year loss of $50,000. b. Single year loss of $2 million and a cumulative loss of $4 million. c. Single year loss of $4 million and a cumulative loss of $20 million. d. Single year loss of $10 million and a glimmulative loss of $20 million.A company purchased a computer that cost $10,000, It had an estimated useful life of 5 years and no residual value. The computer was depreciated by the straight-line method and it was sold at the end of the second year of use for $5,000 cash. The company should record:a company discarded a computer system originally purchased for $8850.
- Franklin Manufacturing Company was started on January 1, year 1, when it acquired $81,000 cash by issuing common stock. Franklin immediately purchased office furniture and manufacturing equipment costing $7,700 and $24,900, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,600 salvage value and an expected useful life of three years. The company paid $11,200 for salaries of administrative personnel and $15,500 for wages to production personnel. Finally, the company paid $16,110 for raw materials that were used to make inventory. All inventory was started and completed during the year. Franklin completed production on 4,900 units of product and sold 3,970 units at a price of $15 each in year 1. (Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.) Required a. Determine the total product cost and the average cost per unit of the inventory produced in…Diaz Company owns a machine that cost $125,400 and has accumulated depreciation of $90,900. Prepare the entry to record the disposal of the machine on January 1 in each separate situation. 1. The machine needed extensive repairs and was not worth repairing. Diaz disposed of the machine, receiving nothing in return.2. Diaz sold the machine for $17,500 cash.3. Diaz sold the machine for $34,500 cash.4. Diaz sold the machine for $41,300 cash. Journal entry worksheetA copy machine costs $41,000 when new and has accumulated depreciation of $35,000. Suppose Hilton Copy Center discards this machine and receives nothing. What is the result of the disposal transaction? A. No gain or loss B. Gain of $6,000 C. Loss of $40,000 D. Loss of $6,000
- Oxdale Kennels has insured its building with multiple companies for a total of $1,141,000, of which $855,750 is with Nationwide. Assuming that all coinsurance requirements have been met, how much would Nationwide be responsible for in the event of a $202,000 fire? O $50,500 O $141,400 O $151,500 O $202,0005. In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) d. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a corporation and the sale proceeds were decreased to $20,000? Total Gain/Loss Recognized? Ordinary Gain/Loss? 1231 Gain/Loss?Diaz Company owns a machine that cost $126,300 and has accumulated depreciation of $91,700. Prepare the entry to record the disposal of the machine on January 1 in each seperate situation. The machine needed extensive repairs and was not worth repairing. Diaz disposed of the machine, receiving nothing in return. Diaz sold the machine for $17,000 cash. Diaz sold the machine for $34,600 cash. Diaz sold the machine for $41,200 cash. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01
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