Question

On July 31, 2021, the company donated this machine to the Mountain King City Council. The fair value of the machine at the time of the donation was estimated to be $1,430,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer 1

The subject of this question is Accounting and the grade level is High School. This question is related to the concept of donations and their accounting treatment.

Step-by-step explanation:

The subject of this question is Accounting and the grade level is High School.

This question is related to the concept of donations and their accounting treatment. In this scenario, the company donated a machine to the Mountain King City Council.

The fair value of the machine was estimated to be $1,430,000.

In accounting, when a company makes a donation, it is recorded as an expense and a credit to the donation expense account.

The fair value of the donated item is recorded as an expense on the income statement.