Use the following information for questions 61 and 62.
Equipment that cost $525,000 and had a book value of $234,000 was sold for $270,000. Data from the comparative balance sheets are: $\begin{array}{lrr}&12 / 31 / 15&12 / 31 / 14\
\text { Equipment } & \$ 3,240,000 & \$ 2,925,000 \
\text { Accumulated Depreciation } & 990,000 & 855,000
\end{array}$
-Equipment purchased during 2015 was
A) $840,000.
B) $525,000.
C) $315,000.
D) $549,000.

Question

Quizplus · Accepted Answer

The equipment purchased during 2015 can be calculated by adjusting the change in equipment cost for the sale of equipment. The change in equipment cost is $3,240,000 (end of 2015) - $2,925,000 (end of 2014) = $315,000. However, this does not account for the equipment that was sold. The original cost of the sold equipment was $525,000, so the total purchases are the change in equipment cost plus the cost of the sold equipment: $315,000 + $525,000 = $840,000.

Use the Following Information for Questions 61 and 62 -Equipment Purchased During 2015 Was A) $840,000

Use the Following Information for Questions 61 and 62 -Equipment Purchased During 2015 Was
A) $840,000