Creek Construction owned a bulldozer which was destroyed by fire. The bulldozeroriginally cost $38,000. The accumulated depreciation recorded to the date of loss was$20,000. The proceeds from the insurance company were $20,000. Creek Construction should recognize:
A) A loss of $38,000.
B) A gain of $2,000.
C) An expense of $2,000.
D) A loss of $2,000.
E) A gain of $20,000.
Correct Answer:
Verified
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