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On January 3, 2021, Oriole Company owned a machine that had cost $405000. The accumulated depreciation was $244000, estimated salvage value was $24400, and fair
On January 3, 2021, Oriole Company owned a machine that had cost $405000. The accumulated depreciation was $244000, estimated salvage value was $24400, and fair value was $643000. On January 4, 2021, this machine was irreparably damaged by Sandhill and became worthless. In October 2021, a court awarded damages of $483000 against Sandhill in favor of Oriole. At December 31, 2021, the final outcome of this case was awaiting appeal and was, therefore, uncertain. However, in the opinion of Oriole's attorney, Sandhill's appeal will be denied. At December 31, 2021, what amount should Oriole accrue for this gain contingency? O $0. O $643000. O $405000 O $160000
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