The Valz Corporation had a balance in its equipmentEquipment account on January 1,2014at the beginning of the year of $650,000.During the year,equipment originally costing $170,000,which had and having accumulated depreciation of $40,000,was sold for $134,000.The ending balance of the equipmentEquipment account was $550,000.How much additional equipment was purchased during 2014the year?

Question

Quizplus · Accepted Answer

Beginning balance + Purchases of equipment - Cost of equipment sold = Ending balance
$650,000 + Purchases of equipment - $170,000 = $550,000
Purchases of equipment = $550,000 - $650,000 + $170,000 = $70,000

The Valz Corporation Had a Balance in Its EquipmentEquipment Account