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Business, 11.03.2020 22:20 jimarieb08

On January 3, Year 5, Ard Corp. owned a machine that had cost $60,000. The accumulated depreciation was $50,000, estimated salvage value was $5,000, and fair market value was $90,000. On January 4, Year 5, this machine was irreparably damaged by Rice Corp. and became worthless. In October Year 5, a court awarded damages of $90,000 against Rice in favor of Ard. At December 31, Year 5, the final outcome of this case was awaiting appeal and was, therefore, uncertain.

However, in the opinion of Ard's attorney, Rice's appeal will be denied.

At December 31, Year 5, what amount should Ard accrue for this gain contingency?

a) $90,000
b) $80,000
c) $75,000
d) $ -0-

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On January 3, Year 5, Ard Corp. owned a machine that had cost $60,000. The accumulated depreciation...
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