A Company Had a Tractor Destroyed by Fire

question 155

Multiple Choice

A company had a tractor destroyed by fire.The tractor originally cost $85,000 with accumulated depreciation of $60,000.The proceeds from the insurance company were $20,000.The company should recognize:

• A)A loss of $5,000.
• B)A gain of $5,000.
• C)A loss of $20,000.
• D)A gain of $65,000.
• E)A gain of $20,000.

---

Definitions:

Product Delivery

The complete process of bringing a product from conception to market availability, including production, testing, and distribution.

Product Design

The process of creating a new product to be sold by a business to its customers, focusing on form, function, usability, and aesthetics.

HR Policies

Specific guidelines or rules set by an organization's human resources department to govern employee relations and workplace practices.

Financial Health

A measure of the financial stability and viability of an entity, often assessed through metrics such as liquidity, solvency, and profitability.