Financial statements for Rogan Company are given below:
Total assets on the balance sheet at December 31, 2008 are $2,216,000. Accumulated deprecia-tion on the equipment sold was $112,000.
-When the equipment was sold, the Buildings and Equipment account received a credit of
A) $96,000.
B) $208,000.
C) $160,000.
D) $112,000.

Question

Financial statements for Rogan Company are given below:
   Total assets on the balance sheet at December 31, 2008 are $2,216,000. Accumulated deprecia-tion on the equipment sold was $112,000.
-When the equipment was sold, the Buildings and Equipment account received a credit of
A) $96,000. 
B) $208,000. 
C) $160,000. 
D) $112,000.

Quizplus · Accepted Answer

$96,000 - $48,000 = $48,000 (BV); $48,000 + $112,000 = $160,000.

Financial Statements for Rogan Company Are Given Below