John’s uncle donated a truck to his company, John’s Corporation. The truck had an original cost of $95,000, a book value of $40,000, and a fair value of $55,000. The journal entry by John’s Corporation to record this donated asset will include a a. debit Truck for $60,000 and credit Gain for $20,000. b. debit Truck for $55,000 and credit Gain for $55,000. c. debit Truck for $95,000 and credit Gain for $95,000. d. debit Truck for $60,000 and credit Gain for $60,000.
John’s uncle donated a truck to his company, John’s Corporation. The truck had an original cost of $95,000, a book value of $40,000, and a fair value of $55,000. The journal entry by John’s Corporation to record this donated asset will include a a. debit Truck for $60,000 and credit Gain for $20,000. b. debit Truck for $55,000 and credit Gain for $55,000. c. debit Truck for $95,000 and credit Gain for $95,000. d. debit Truck for $60,000 and credit Gain for $60,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
John’s uncle donated a truck to his company, John’s Corporation. The truck had an original cost of $95,000, a book value of $40,000, and a fair value of $55,000. The journal entry by John’s Corporation to record this donated asset will include a
| a. |
debit Truck for $60,000 and credit Gain for $20,000. |
|
| b. |
debit Truck for $55,000 and credit Gain for $55,000. |
|
| c. |
debit Truck for $95,000 and credit Gain for $95,000. |
|
| d. |
debit Truck for $60,000 and credit Gain for $60,000. |
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