Question
8) Events after closing / AREA The company closes on 12/31/2019. On 4/1/2020 the premises caught fire, causing a loss of 70% of the total
8) Events after closing / AREA The company closes on 12/31/2019. On 4/1/2020 the premises caught fire, causing a loss of 70% of the total property, which is valued at $ 1,000,000.
What should be done in accounting? a) Dump the information in notes (complementary information) in the financial statements as of 12/31/2019, and record the loss of $ 700,000 in the 2020 balance sheet. b) Accounting for the loss as of 12/31/2019 for $ 700,000. c) Accounting for the loss as of 12/31/2019 for $ 1,000,000. d) Dump only the information in notes (complementary information) in the balance sheet at 12/31/2020. e) Accounting for the loss of $ 1,000,000 as of 01/04/2020. f) None of the above.
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