Blueberry Corp $\begin{array}{llr} \text { Loss due to theft } &\$189,000\\ \text { Payment of fire insur ance for calendar year 2020 } &270,000\\\end{array}$

question 15

Short Answer

Blueberry Corp. had the following transactions during the quarter ended March 31, 2020: $\begin{array}{llr} \text { Loss due to theft } &\$189,000\\ \text { Payment of fire insur ance for calendar year 2020 } &270,000\\\end{array}$
What amount should be included in Blueberry's income statement for the quarter ended March 31, 2020? $\begin{array}{ccc} &\text { Loss from Theft}&\text {Insurance Expense}\\\end{array}$
A) $\begin{array}{ccc} &\quad\quad \$ 0 &\quad\quad\quad\quad\quad \$ 270,000 \\\end{array}$
B) $\begin{array}{ccc} &\quad \$ 189,000 & \quad\quad\quad\$ 270,000 \\\end{array}$
C) $\begin{array}{ccc}&\quad \$ 31,500 &\quad\quad\quad\quad \$ 67,500 \\\end{array}$
D) $\begin{array}{ccc} &\quad \$ 189,000 &\quad\quad\quad\quad \$ 67,500\end{array}$

• A)\(\begin{array}{ccc} &\quad\quad \$ 0 &\quad\quad\quad\quad\quad \$ 270,000 \\\end{array}\)
• B)\(\begin{array}{ccc} &\quad \$ 189,000 & \quad\quad\quad\$ 270,000 \\\end{array}\)
• C)\(\begin{array}{ccc}&\quad \$ 31,500 &\quad\quad\quad\quad \$ 67,500 \\\end{array}\)
• D)\(\begin{array}{ccc} &\quad \$ 189,000 &\quad\quad\quad\quad \$ 67,500\end{array}\)

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Definitions:

Domestic Investment

Domestic investment pertains to the total amount of money spent on capital goods, services, and structures within a country.

Loanable Funds Market

A market where borrowers and lenders interact, with the interest rate determined by the supply of and demand for loanable funds.

Curve Shift

A movement of a demand or supply curve to the left or right, indicating a change in some economic factor other than price.

Exchange Rate

The price of one currency in terms of another, determining how much of one currency can be exchanged for another.