Reference no: EM133027830

Question - Indicate whether the statement is true or false. (Topics: Insurance Contract, Build Operate Transfer, PFRS 15)

1. A financial asset may be recognized if the government guarantees payment of a shortfall between a specified amount and the amount received from the public for their use of the operator's service.

2. The intangible asset recognized by an operator is an unconditional right to receive cash from the public.

3. The financial asset recognized by an operator is to the extent that it has a contractual right to receive cash or another financial asset contingent on the provisions of the grantor.

A fire occurred at the factory of Bernardo Company on February 16, 2020 which damaged its merchandise inventory. You were given the following information: Inventory, January 1, 2010 $400,000, Sales (including sales delivered still in transit FOB shipping point, $50,000) $980,000, Purchases (including those still in transit, Shipped FOB shipping point $40,000, Shipped FOB destination, $35,000) $700,000. The merchandise saved from fire was estimated to be $8,500. Bernardo Company's policy is to add 40% on its cost. How much is the estimated value of inventory damaged by fire?