Creek Construction owned a bulldozer which was destroyed by fire.The bulldozer originally 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 $2,000
B) An expense of $2,000
C) A loss of $38,000
D) A gain of $20,000
E) A gain of $2,000
Correct Answer:
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