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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- Mushroom Inc. had an explosion in its plan that destroyed most of its inventory. Its records show that beginning inventory was $40,000. Mushroom made purchases of $480,000 and sales of $620,000 during the year. Its normal gross profit percentage is 25%. It can sell some of its damaged inventory for $5,000. The insurance company will reimburse Mushroom for 70% of its loss. What amount should Mushroom reports as loss from the explosion on its financials? $50,000 $35,000 $18,000 $15,000Swifty Company's delivery truck, which originally cost $83100, was destroyed by fire. At the time of the fire, the balance of the Accumulated Depreciation account amounted to $57200. The company received $47300 reimbursement from its insurance company. The gain or loss as a result of the fire was $21400 gain. $35800 loss. $35800 gain. $21400 loss.4. Sports Haven has an assessed value of $200,000 and an inventory valued at $65,000. The store is insured for $175,000 and the inventory is insured for $45,000. Both the store and the inventory have 80% coinsurance clauses. Water damage causes a loss of $72,000 on the building and destroys 50% of the inventory. Find the amount of loss paid by the insurance company. Amount of loss
- 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. $143,000Bravo Company's furnace, which has a current book value of $40,000 (original cost less than accumulated depreciation), has been destroyed. If the insurance company pays Bravo $45,000, which of the following transactions is Bravo supposed to record? Select the single best answer: A debit Cash $45,000 credit Equipment/Furnace $45,000 B. debit Cash $40,000, debit Equipment/Furnace $40,000 C credit Gain on Disposition of Equipment/Furnace $45,000, debit Cash $45,000 D. debit Equipment/Furnace $5,000 credit Equipment/Furnace $40.000, debit Cash $45,000 E credit Gain on Disposition of Equipment/Furnace $5,000 credit Equipment/Furnace $40,000; debit Cash $45.000On December 31, 2021, a machine owned by SLP COMPANY was destroyed by a fire. SLP COMPANY incurred removal and clean-up costs of P40,000. The machine had a book value of P450,000 and a fair value of P510,000 at the time of the fire. The machine was insured “new to old” and was replaced by the insurance company with a new one currently selling at P560,000. The loss due to fire to be reported in the 2021 income statement is
- A company has inventory of $550,000 in a warehouse that is completely destroyed by fire. There is no insurance to cover this loss. The cost to replace the inventory is $500,000. What inventory cost should the manger use to estimate economic profit? a.-550000 b.500000 c.550000 d.50000 e.-50000Norse Company acquired a new machine on January 15 20X1. It sold the machine October 15 20X2 incurring a $10,000 loss. What is the nature of the loss? (a.) Capital Loss (b.) Ordinary Loss (c.) Inventory Loss (e.) Section 1231 LossA company had a tractor destroyed by fire. The tractor originally cost $145,000 with accumulated depreciation of $78,000. The proceeds from the insurance company were $40,000. The company should recognize:
- ABC Corporation is a manufacturer of small appliances. That is its only line of business. ABC Corporation had two factories. A fire destroys one of the factories. The factory destroyed by the fire accounted for 20% of ABC Corporation's gross revenue, 25% of ABC Corporation's employees and the factory's net fair market value was 20% of ABC Corporation's total net fair market value. ABC Corporation received insurance proceeds of $1,000,000. Rather than rebuilding the plant, ABC Corporation discharges its employees and distributes the $1,000,000 to Adams, its sole shareholder. (a) Will the redemption qualify for sale or exchange treatment under § 302(a)? (b) What would your answer to part (a) be if ABC Corporation had merely sold the factory rather than it having been destroyed by a fire?A company had a bulldozer destroyed by fire. The bulldozer originally cost $125,000. The accumulated depreciation on it was $60,000. The proceeds from the insurance company were $90,000. The company shou recognize: O A loss of $25,000 O A gain of $25,000 O A loss of $65,000 O A gain of $65,000 O A gain of $90,000The Board of Directors decides that old inventory costing €18,000 is to be written off as the inventory is no longer sellable (it has gone out of fashion). Identical inventory in the past was sold to customers for €31,000. What is the impact on the net assets of the company in monetary terms?