The Valz Corporation had a balance in its Equipment account at the beginning of the year of $650,000.During the year,equipment that originally cost $170,000 and had accumulated depreciation of $40,000 was sold for $134,000.The ending balance of the Equipment account was $550,000.What was the cost of the additional equipment purchased during the year?
A) $70,000
B) $40,000
C) $170,000
D) $174,000

Question

Quizplus · Accepted Answer

The beginning balance was $650,000. Equipment sold had a cost of $170,000, reducing the balance to $480,000 ($650,000 - $170,000). The ending balance was $550,000, indicating additional equipment costing $70,000 was purchased ($550,000 - $480,000).

The Valz Corporation Had a Balance in Its Equipment Account