Three events took place after the year end date but before ABC Inc. has finalized its financial statements for December 31, 2019. One, a devastating fire destroyed $98,000 of inventory and other capital items. Second, the board has approved a $100,000 dividend to be paid to shareholders on February 21, 2020. Third, a key customer who owes ABC Inc. $57,000 at December 31, 2019 has declared bankruptcy. Discuss appropriate treatment of each item and the total amount impacting the December 31, 2019 financial statements.

Answer rating: 100% (QA)

1Carrying amount 120785 Fair value less cost to sell 577802050 55730 Impairment loss 120785 55730 65055 The asset shall be shown on the assets side of ... View the full answer