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Problem 1: SINA Company furnace, which has a current book value of $45000 (Original Cost less accumulated depreciation), has been destroyed. If the insurance company pays Bravo$50000 which of the following transactions should be recorded?
A-Debit Cash $50000; Credit Equipment/ Furnace $50000.
B- Debit Cash $45000; debit Equipment/ Furnace $45000.
C-Credit Gain on Disposition of Equipment/ Furnace $50000; Debit cash $50000.
D-debit Equipment/ Furnace $5000; Credit Equipment/ Furnace $45000; debit Cash $50000.
E-Credit Gain on Disposition of Equipment/ Furnace $5000; Credit Equipment/ Furnace $45000; Debit Cash $50000.
A person received an inheritance of 500000 rs and want to invest a portion of it for future. His goal to accumulate 700000 rs in 12 year. How much of the inheritance should be invested if the money earns interest at 12% per year compounded semi an..
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There are many correct answers to this case; however, all involve giving specific examples to justify which accounting method you prefer
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