On January 3, 2014, Benton Corp

question 126

Multiple Choice

On January 3, 2014, Benton Corp. owned a machine that had cost $300,000. The accumulated depreciation was $180,000, estimated salvage value was $18,000, and fair value was $480,000. On January 4, 2014, this machine was irreparably damaged by Pogo Corp. and became worthless. In October 2014, a court awarded damages of $480,000 against Pogo in favor of Benton. At December 31, 2014, the final outcome of this case was awaiting appeal and was, therefore, uncertain. However, in the opinion of Benton's attorney, Pogo's appeal will be denied. At December 31, 2014, what amount should Benton accrue for this gain contingency?

• A) $480,000.
• B) $390,000.
• C) $300,000.
• D) $0.

---

Definitions:

Hexadecimal

A base-16 numeral system that uses sixteen distinct symbols, typically 0-9 and A-F, for representing values.

Base-12 System

A numeral system that uses twelve as its base, employing twelve distinct symbols for its digits.

Desktop Publishing Software

Applications designed for creating visual and textual documents, capable of arranging text and images for both print and online media.

Annual Reports

Periodic publications by companies detailing their financial performance, activities, and strategy over the past year.