One of Spade Corp.'s assets was expropriated by government authorities. The following additional information is available: Book value at the time of expropriation..................$600,000
Cash received..........................................................$\$ 1,500,000$ Under ASPE, this situation would be reflected in the company's financial statements as a $900,000

Question

Quizplus · Accepted Answer

The gain from the expropriation of the asset should be recognized as a gain in the income statement as it results from the ordinary activities of the company. Therefore, the gain would be included in net income.

One of Spade Corp $1,500,000\$ 1,500,000$1,500,000 Under ASPE, This Situation Would Be Reflected in the Company's

One of Spade Corp $\$ 1,500,000$ Under ASPE, This Situation Would Be Reflected in the Company's