Question: On January 3 , 2 0 2 6 , Concord Corp. owned a machine that had cost $ 4 0 1 0 0 0 .

On January

3, 2026,

Concord Corp. owned a machine that had cost $

401000 .

The accumulated depreciation was $

245000,

the estimated salvage value was $

24500,

and the fair value was $

645000 .

On January

4, 2026,

this machine was irreparably damaged by Ivanhoe Corp. and became worthless. In October

2026,

a court awarded damages of $

478000

against Ivanhoe in favor of Concord. At December

31, 2026,

the final outcome of this case was awaiting appeal and was, therefore, uncertain. However, in the opinion of Concord's attorney, Ivanhoe's appeal will be denied. At December

31, 2026,

what amount should Concord accrue for this gain contingency?

401000

0

522500

645000

On January 3 , 2 0 2 6 , Concord Corp. owned a

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