Brower Corporation owns a manufacturing plant in the country of Oust. On December 31, 2014, the plant

Question:

Brower owns a manufacturing plant in the country of Oust. On December 31, 2014, the plant had a book value of $5,000,000 and an estimated fair value of $8,000,000. Oust’s government has clearly indicated that it will expropriate the plant during the coming year and will reimburse Brower for only 40% of the plant’s estimated fair value.

Required:
What journal entry (if any) should Brower make on December 31, 2014, to record the intended expropriation?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...