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Chambersburg Corp -Refer to the Information for Chambersburg Corp

Question 133

Multiple Choice

Chambersburg Corp.
The following information is for Chambersburg Corp.for 2018 and 2017.Chambersburg uses the straight-line depreciation method.
20182017 Property, plant, and equipment $250,000$190,000 Accumulated depreciation 100,00085,000 Depreciation expense 62,50047,500 Net sales 1,000,000900,000 Average total assets 625,000475,000\begin{array} { l r r } & \underline { \mathbf { 2 0 1 8 } } & \underline { \mathbf { 2 0 1 7 } } \\\text { Property, plant, and equipment } & \$ 250,000 & \$ 190,000 \\\text { Accumulated depreciation } & 100,000 & 85,000 \\ \text { Depreciation expense } & 62,500 & 47,500 \\\text { Net sales } & 1,000,000 & 900,000 \\\text { Average total assets }& 625,000 & 475,000\end{array}
-Refer to the information for Chambersburg Corp. ?
Between 2017 and 2018,Chambersburg sold some equipment that had an original cost of $57,500.Which statement is most likely true concerning transactions that must have occurred during the period?


A) Chambersburg also purchased additional equipment during the year.
B) The selling price of the equipment sold was reported with net sales.
C) The equipment that was sold had a book value of $12,500.
D) The equipment sold had not been reported with Chambersburg's property,plant,and equipment.

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