Answer:
A gain of $21,000
Step-by-step explanation:
Data Provided in the question;
Original cost of the delivery truck = $84,000
Accumulated Depreciation account amounted at the time of fire = $57,000
Reimbursement received from its insurance company = $48,000
Now,
Book value of the truck at the time of fire
= Original cost - Accumulated Depreciation
= $84,000 - $57,000
= $27,000
Since,
The amount received as the reimbursement from its insurance company is higher than the book value at the time of the fire
Thus, the fire will result in a gain
The amount of gain = Reimbursement received - Book value
= $48,000 - $27,000
= $21,000
