Equipment that cost $10,000 that had a book value of $6,000 was sold for $7,000. Data from the comparative balance sheets are:
$\begin{array}{lrr}
&12/31/17&12/31/16\
\hline \text { Equipment } & \$ 420,000 & \$ 310,000 \
\text { Accumulated Depreciation } & 59,000 & 36,000
\end{array}$

Equipment purchased during 2017 cost
A)$120,000.
B)$110,000.
C)$145,000.
D)$10,000.

Question

Equipment that cost $10,000 that had a book value of $6,000 was sold for $7,000. Data from the comparative balance sheets are:
$\begin{array}{lrr}
&12/31/17&12/31/16\
\hline \text { Equipment } & \$ 420,000 & \$ 310,000 \
\text { Accumulated Depreciation } & 59,000 & 36,000
\end{array}$

Equipment purchased during 2017 cost
A)$120,000.
B)$110,000.
C)$145,000.
D)$10,000.

Quizplus · Accepted Answer

The equipment purchased during 2017 is the difference between the equipment balance at 12/31/17 and the equipment balance at 12/31/16, which is $420,000 - $310,000 = $110,000.

Equipment That Cost $10,000 That Had a Book Value of $6,000