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1. During the year, Herbawi received $1,500,000 from its insurance company to cover losses suffered during hurricane, This was the first-horricane ever to strike in
1. During the year, Herbawi received $1,500,000 from its insurance company to cover losses suffered during hurricane, This was the first-horricane ever to strike in area. The hurricane destroyed a warehouse with a carrying amount of $640.000, containing equipment with a carrying amount of $370,000 and inventory with a carrying amount of $785,000 and a fair value of $90.000. Compute the amount of gain or loss from the hurricane and select the proper category.
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