Answered

Welcome to Westonci.ca, your one-stop destination for finding answers to all your questions. Join our expert community now! Explore our Q&A platform to find reliable answers from a wide range of experts in different fields. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

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 $95,000 and credit Gain for $35,000.
b. debit Truck for $60,000 and credit Gain for $20,000.
c. debit Truck for $60,000 and credit Gain for $60,000.
d. debit Truck for $95,000 and credit Gain for $95,000.

Sagot :

abiolataiwo2015

Based on the information given the appropriate journal entry  by John's Corporation to record this donated asset will include a: c. debit Truck for $60,000 and credit Gain for $60,000.

Since the truck donated to his corporation has a fair value of the amount of $60,000 which is the worth of the truck (assets) which means that the appropriate journal entry to record the transaction will be:

Debit Truck  $60,000

Credit Gain $60,000

(To record asset donated)

Inconclusion the journal entry  by John's Corporation to record this donated asset will include a: c. debit Truck for $60,000 and credit Gain for $60,000.

Learn more about journal entry here:https://brainly.com/question/14694738

Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.