The Mann Company does not carry insurance on its office machines. On December 27, 20x2, machine A was totally destroyed by fire. The book value of machine A, depreciated to the date of the fire, was $62,000. Disposal costs were $3,000. On December 30, 20x2, machine B which can only be operated with machine A's support, depreciated to the date of explosion, was $74,000. Disposal costs were $4,000. What is the total amount of losses that should be charged to income in 20x2? a. $ 62,000 b. $ 65,000 c. $136,000 d. $143,000
The Mann Company does not carry insurance on its office machines. On December 27, 20x2, machine A was totally destroyed by fire. The book value of machine A, depreciated to the date of the fire, was $62,000. Disposal costs were $3,000. On December 30, 20x2, machine B which can only be operated with machine A's support, depreciated to the date of explosion, was $74,000. Disposal costs were $4,000. What is the total amount of losses that should be charged to income in 20x2? a. $ 62,000 b. $ 65,000 c. $136,000 d. $143,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Mann Company does not carry insurance on its office machines. On December 27, 20x2, machine A was totally destroyed by fire. The book value of machine A, depreciated to the date of the fire, was $62,000. Disposal costs were $3,000. On December 30, 20x2, machine B which can only be operated with machine A's support, depreciated to the date of explosion, was $74,000. Disposal costs were $4,000. What is the total amount of losses that should be charged to income in 20x2?
a. $ 62,000
b. $ 65,000
c. $136,000
d. $143,000
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