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:

False Endorsements

misleading approvals or support, often used in advertising, suggesting that a product or service is recommended by someone who has not actually endorsed it.

Social Media

Platforms on the internet that enable users to create, share content, or participate in social networking.

Utility

Refers to the usefulness or practicality of an object, idea, or service, especially in terms of satisfying needs or wants.

Contract Law

The branch of legal study that deals with the creation, enforcement, and legality of agreements between two or more parties.