Aye Company's Computer Was Destroyed by Fire

question 166

Essay

Aye Company's computer was destroyed by fire.The computer originally cost $5,000,and accumulated depreciation to the date of the fire was $900.The company received $2,000 from an insurance policy that covered the computer and will use that money to help pay for a new computer.Prepare the general journal entry to record the loss of the computer and the receipt of cash from the insurance company.

Calculate percentage ownership and its impact on income attribution.

Recognize and account for the investment of a subsidiary in its parent company.

Determine consolidated net income including the impact of intra-entity transactions.

Understand mutual, direct, and indirect ownership structures within corporate groups.

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Definitions:

Relaxation Phase

The phase in the cardiac cycle or muscle contraction where the muscle returns to its initial state of relaxation.

Sarcoplasmic Reticulum

A network of tubules and sacs in muscle cells that store and regulate calcium ions, crucial for muscle contraction.

Depolarization

A reduction in the difference in voltage across a cell's plasma membrane, which is fundamental in the propagation of nerve impulses.

Calcium

An essential mineral in the body, critical for bone health, muscle function, and nerve signaling.