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Burka [1]
3 years ago
6

A company had a tractor destroyed by fire. The tractor originally cost $136,000 with accumulated depreciation of $69,900. The pr

oceeds from the insurance company were $31,000. The company should recognize
Mathematics
1 answer:
Gnoma [55]3 years ago
4 0

Answer: A loss of $35,100

Step-by-step explanation:

The tractor had cost $136,000 and had accumulated a depreciation of $69,900.

This means that the net book value of the tractor was:

= 136,000 - 69,900

= $66,100

The insurance company was supposed to give them this amount but instead gave them $31,000. They will therefore suffer a loss of:

= 66,100 - 31,100

= $35,100

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