John's Uncle Donated a Truck to His Company, John's Corporation

question 59

Multiple Choice

John's uncle donated a truck to his company, John's Corporation. The truck had an original cost of $95,000, a book value of $40,000, and a fair value of $60,000. The journal entry by John's Corporation to record this donated asset will include a

• A) debit Truck for $60,000 and credit Gain for $20,000.
• B) debit Truck for $60,000 and credit Gain for $60,000.
• C) debit Truck for $95,000 and credit Gain for $35,000.
• D) debit Truck for $95,000 and credit Gain for $95,000.

---

Definitions:

Abatement

The reduction or removal of environmental pollutants or negative externalities to improve environmental quality.

Emissions

Emissions refer to pollutants released into the air, water, or soil by industrial activities, vehicles, and other sources that can have adverse effects on the environment and human health.

Efficient Level

The optimal point of production or operation where resources are utilized in the most cost-effective way, without waste.

Emissions

The release of substances (like gases, heat, light, sound, or particles) into the atmosphere or environment, often associated with pollution.