微信扫一扫
实时资讯全掌握
| On June 30, year 2, a fire in Ruffing Company’s plant caused a total loss to a production machine. The machine had a book value of $80,000 at December 31, year 1, and was being depreciated at an annual rate of $10,000. The machine had a fair value of $110,000 at the date of the fire, and Ruffing received insurance proceeds of $100,000 in October year 2. The same month Ruffing purchased a replacement machine for $130,000. Ignoring income taxes, what amount should Ruffing report on its year 2 income statement as involuntary conversion gain or loss? A. $0. B. $25,000 gain. C. $20,000 gain. D. $10,000 loss. |