Riley,Inc.began the year with Property and Equipment costing $1,020,000 and accumulated depreciation of $180,000.The only change affecting the long-lived assets account during the year is the $82,500 of depreciation expense that must be recorded for the year.What is the amount of Property and Equipment,net,to be reported on the balance sheet at the end of the year?
A)$1,020,000
B)$937,500
C)$757,500
D)$840,000

Question

Quizplus · Accepted Answer

Property and Equipment,net = Cost − Accumulated depreciation
Ending accumulated depreciation = Beginning accumulated depreciation + Depreciation expense − Accumulated depreciation on asset disposals
= $1,020,000 − ($180,000 + $82,500 − $0)= $757,500

Riley,Incbegan the Year with Property and Equipment Costing $1,020,000 and Accumulated