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8 March, 21:30

A company had a tractor destroyed by fire. The tractor originally cost $128,000 with accumulated depreciation of $62,700. The proceeds from the insurance company were $23,000. The company should recognize:

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  1. 8 March, 21:52
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    The company should recognize a loss of $42,300.

    Explanation:

    Original cost of tractor: $128,000

    Accumulated depreciation: $62,700

    So, current value of tractor: $65,300

    Proceeds from the insurance company: $23,000

    Hence, the company made a loss of: $65,300-$23,000

    The loss = $42,300
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