Dodd Village received a gift of a new fire engine from a local civic group. The fair value of this fire engine was $400,000. Which of the following is the correct entry to be made in the general fixed assets account group for this gift?
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Debit |
Credit |
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a. Memorandum entry only |
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b. General fund assets |
400,000 |
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Private gifts |
400,000 |
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c. Investment in general fixed assets |
400,000 |
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Gift revenue |
400,000 |
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d. Machinery and equipment |
400,000 |
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Investment in general fixed assets from private gifts |
400,000 |
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10. The following information pertains to Spruce City’s liability for claims and judgments:
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Current liability at January 1, 20X2 |
$100,000 |
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Claims paid during 20X2 |
800,000 |
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Current liability at December 31, 20X2 |
140,000 |
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Noncurrent liability at December 31, 20X2 |
200,000 |
What amount should Spruce report for 20X2 claims and judgment expenditures?
a. $1,040,000
b. $940,000
c. $840,000
d. $800,000