Sigma Company Suffers a Loss to Its Building in a Fire

question 113

Multiple Choice

Sigma Company suffers a loss to its building in a fire and spends $100,000 on repairs and improvements.It judges that $80,000 of the expenditure replaces long-lived assets lost in the fire, and $20,000 represents improvements to the building.Which of the following is the single journal entry that Sigma Company will make?

• A) Building . . . . . . . . . . .. . . . . . 100,000

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Definitions:

Quorum

The minimum number of members required to be present at a meeting to make the proceedings of that meeting valid.

Shareholders Meeting

A gathering of the shareholders of a company where decisions regarding the company's affairs are discussed and voted on.

Model Nonprofit Corporation Act (MNCA)

A template legislation that provides a basis for the statute governing nonprofit corporations in some states.

Quorum

The minimum number of members required to be present at a meeting to legally conduct business.