Table 17-2
Reese Company reported the following data for 2017:
$\begin{array}{ll}
\text { Beginning property, plant, and equip. } & \$ 75,000 \
\text { Beginning accumulated amortization } & 10,200 \
\text { Amortization expense for the year } & 3,200 \
\text { Purchases of property, plant, and equip. } & 5,600 \
\text { Ending property, plant, and equipment } & 75,400 \
\text { Loss on sale of property, plant, and equip. } & 2,600 \
\text { Ending accumulated amortization } & 11,100
\end{array}$ Cash received from the sale of property, plant, and equipment amounted to $300
-Refer to Table 17-2.How much accumulated amortization was recorded on the property,plant,and equipment sold during 2017?
A) $3,200
B) $2,300
C) $900
D) $1,000

Question

Table 17-2
Reese Company reported the following data for 2017:
 $\begin{array}{ll}
\text { Beginning property, plant, and equip. } & \$ 75,000 \
\text { Beginning accumulated amortization } & 10,200 \
\text { Amortization expense for the year } & 3,200 \
\text { Purchases of property, plant, and equip. } & 5,600 \
\text { Ending property, plant, and equipment } & 75,400 \
\text { Loss on sale of property, plant, and equip. } & 2,600 \
\text { Ending accumulated amortization } & 11,100
\end{array}$ Cash received from the sale of property, plant, and equipment amounted to $300
-Refer to Table 17-2.How much accumulated amortization was recorded on the property,plant,and equipment sold during 2017?
A) $3,200
B) $2,300
C) $900
D) $1,000

Quizplus · Accepted Answer

To find the accumulated amortization recorded on the property, plant, and equipment sold during 2017, we first calculate the amortization expense for the year, which is given as $3,200. Then, we need to adjust for the ending accumulated amortization to find out how much was related to the sold assets. The beginning accumulated amortization is $10,200, and the ending is $11,100, which means an increase of $900 ($11,100 - $10,200). However, the total amortization expense was $3,200, indicating that $2,300 ($3,200 - $900) of the amortization expense must have been related to the assets that were sold, as this amount would have been removed from the accumulated amortization upon sale.

Table 17-2 Reese Company Reported the Following Data for 2017

Table 17-2
Reese Company Reported the Following Data for 2017