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Annas business warehouse is destroyed in a fire. She paid $150,000 for the warehouse, and $50,000 of depreciation has been deducted during its period of
Annas business warehouse is destroyed in a fire. She paid $150,000 for the warehouse, and $50,000 of depreciation has been deducted during its period of use. The insurance company pays Anna $125,000 due to the fire. What is the minimum amount that Anna must spend on a new warehouse to avoid any gain recognition? A) $0 B) $100,000 C) $125,000 D) $150,000
Annas business warehouse is destroyed in a fire. She paid $150,000 for the warehouse, and $50,000 of depreciation has been deducted during its period of use. The insurance company pays Anna $125,000 due to the fire. What is the minimum amount that Anna must spend on a new warehouse to avoid any gain recognition?
A) $0
B) $100,000
C) $125,000
D) $150,000
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Managerial Accounting
Authors: John J. Wild, Ken W. Shaw
2010 Edition
9789813155497, 73379581, 9813155493, 978-0073379586
