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

Question

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

The Valz Corporation Had a Balance in Its Equipment Account