Sheffield Company's delivery truck, which originally cost $85400, was destroyed by fire. At the time of the fire, the balance of

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Sheffield Company's delivery truck, which originally cost $85400, was destroyed by fire. At the time of the fire, the balance of

the Accumulated Depreciation account amounted to $57200. The company received $47500 reimbursement from its insurance company. The gain or loss as a result of the fire was $37900 loss. $19300 gain. $19300 loss. $37900 gain.

Business

1 answer:

alexira [117] · Answer 1 · 2023-06-26T23:29:02+03:00

the Accumulated Depreciation account amounted to $57200. $19300 loss as a result of the fire

<h3>What is Depreciation?</h3>

Because of use, wear and tear, or obsolescence, the monetary value of an asset depreciates over time. Depreciation is the measurement of this decrease. Depreciation, or a decrease in the value of an asset, can be caused by a variety of other factors, such as unfavorable market conditions, etc.

Depreciation in Action - If a company buys a delivery truck for Rs. 100,000 and expects to use it for 5 years, the company may depreciate the asset at a rate of Rs. 20,000 per year for 5 years.

To know more about Depreciation follow the link:

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