Equipment with an original cost of $78,000 has a fair market value of $68,000, current replacement cost of $82,000, and a depreciated value of $74,000 on December 31, 2018. At what amount would net equipment be measured on the December 31, 2018 balance sheet?

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The net equipment would be measured at the depreciated value of $74,000, which represents the amount the equipment has been used and worn down over time. The fair market value and replacement cost may be useful for decision-making purposes or insurance purposes, but for accounting purposes, the relevant value is the depreciated value.

Equipment with an Original Cost of $78,000 Has a Fair