Ask Question
12 September, 07:27

A citizen of York purchased a truck in 20X3 for $50,000. On June 10, 20X9, she donated the truck to York. The fair value of the truck on the date of donation was $30,000. How should York report the truck in its government-wide Statement of Net Assets

+1
Answers (2)
  1. 12 September, 08:13
    0
    B. Machinery and equipment should be increased $30,000.

    Explanation:

    Given that the current fair value of the truck donated to the city of York is valued at $30,000, the amount or entry to be written on the government wide statement of net asset will be machinery and equipment should be increased by $30,000. The initial amount of the truck that the citizen purchased it for in 20X3 is not a true represented of the current worth of the truck, hence the reason it is not being used and it's why the fair value estimation gives a better current worth of the asset.
  2. 12 September, 09:48
    0
    Since the fair value was $30,000 hence the interest was $50,000-30,000=$20,000

    option C is correct.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A citizen of York purchased a truck in 20X3 for $50,000. On June 10, 20X9, she donated the truck to York. The fair value of the truck on ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers