Say a professional musician was practicing and their amp caught fire and destroyed all of their...

Say a professional musician was practicing and their amp caught fire and destroyed all of their equipment for a total of $9750 (not covered by insurance) would you be able to write this off in any way? maybe as a business loss?

Expert Solution

Yes, the professional musician can show it as a Loss Of asset by fire if he had debited it as an asset earlier and shown it as a fixed asset in the balance sheet. or he can simply write it off in profit and loss account as loss due to fire.

ekkarill92 answered 2 years ago

Sarah’s house caught on fire. Through the prompt assistance of her neighbor Odessa, the fire was...

Sarah’s house caught on fire. Through the prompt assistance of her neighbor Odessa, the fire was quickly extinguished. In gratitude, Sarah promised to pay Odessa, $1000. Using IRAC determine whether Odessa enforce this promise?

Jack's business premises were destroyed in a fire and all his records were lost apart from...

Jack's business premises were destroyed in a fire and all his records were lost apart from a recent analysis that he had made of the latest period's results for his company. He managed to retrieve the following: Sales: $375000 GP margin: 28% Total expenses ratio: 17% Tax Rate 30% Debt of equity 0,75:1 Current Assets as percentage of cost of 22% Sales Current ratio 1.8:1 Return on Equity 11% Question: From the information given reconstruct a Statement of Profit or...

Beek’s house was destroyed by fire and claims were filed with the insurance company.

Beek’s house was destroyed by fire and claims were filed with the insurance company. The insurance company (insurer) hired James to investigate the fire as it was suspicious about the cause. Subsequently, the insurer denied the claims based on James’s report. Thompson sued the insurer and Cannon. Beek claimed to be a third party beneficiary of the James-insurer contract. Is Beek correct? If so what type of beneficiary is he and why?

A fire has destroyed a large percentage of the financial records of the Inferno Company. You...

A fire has destroyed a large percentage of the financial records of the Inferno Company. You have the task of piecing together information in order to release a financial report. You have found the return on equity to be 15.3 percent. Sales were $1,760,000, the total debt ratio was .35, and total debt was $653,000. What is the return on assets (ROA)? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,...

The master inventory file, contained on a removable magnetic disk, was destroyed by a small fire...

The master inventory file, contained on a removable magnetic disk, was destroyed by a small fire next to the area where it was stored. The company had to take a special complete inventory in order to reestablish the file. The best control procedure would be: a. fire insurance b. data processing insurance c. a copy of the disk d.Remote storage of a copy of the disk and the transactions since the disk was copied

The financial records of Manchester Corporation were destroyed by fire at the end of 2017. Fortunately,...

The financial records of Manchester Corporation were destroyed by fire at the end of 2017. Fortunately, the controller had kept the following statistical data related to the income statement and the balance sheet in addition to the published balance sheet of the year 2017: The beginning merchandise inventory was $92,000 and decreased 20% during the current year. Sales discounts amount to $17,000. Interest expense was $20,000. The income tax is $106,000. Cost of goods sold amounts to $500,000. Administrative expenses...

Q. The inventory of Ahrsun Ventures Corporation was destroyed by fire on February 29, 2020. The...

Q. The inventory of Ahrsun Ventures Corporation was destroyed by fire on February 29, 2020. The following data is for the first two months of the year: Sales $51,000, Sales Returns and Allowances $1,000, Purchases $28,200; Freight-In $1,200; and Purchase Discounts $1,400. According to the financial statements at year-end December 31, 2019 the balance of Merchandise Inventory was $20,000. Ahrsun Ventures has a gross profit rate of 30% on net sales and uses the periodic method of inventory. REQUIRED: Determine...

A fire has destroyed a large percentage of the financial records of the Excandesco Company. You...

A fire has destroyed a large percentage of the financial records of the Excandesco Company. You have the task of piecing together information in order to release a financial report. You have found the return on equity to be 16.7 percent. Sales were $1,795,000, the total debt ratio was .33, and total debt was $660,000. What are the total assets? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Total assets $ What...

Jessica’s office building is destroyed by fire on November 15, 2016. The adjusted basis of the...

Jessica’s office building is destroyed by fire on November 15, 2016. The adjusted basis of the building is $360,000. She receives insurance proceeds of $505,000 on December 12, 2016. (If there is no gain or loss, select "No gain/loss".) Calculate her realized and recognized gain or loss for the replacement property if she acquires an office building in December 2016 for $505,000. Calculate her realized and recognized gain or loss for the replacement property if she acquires an office building...

A fire recently destroyed a substantial portion of Culver Company’s production capacity. It will be many...

A fire recently destroyed a substantial portion of Culver Company’s production capacity. It will be many months before capacity can be restored. During this period, demand for the firm’s products will exceed the company’s ability to produce them. Per-unit data on the firm’s three major products is summarized as follows: Product A B C Selling price $74 $90 $63 Variable costs 32 25 19 Fixed costs 15 19 9 Operating profit $27 $46 $35 Fixed costs have been allocated to...

Question