Charlie Corporation's adjusted trial balance included the following items (all account balances are normal): Accounts payable Accounts receivable $65,000 $42,000 Capital stock Cash $100,000 $50,000 Dividends $10,000 Goodwill $47,000 Interest expense $4,000 Interest payable $2,000 Inventory $26,000 Notes payable $80,000 Prepaid expenses $5,000 Property, plant & equipment $123,000 Retained earnings $46,000 Rent expense $18,000 Revenues $101,000 Salary expense $60,000 How much are total assets? Tivoli Instrumentation sold a depreciable asset for cash of $100,000. The original cost of the asset was $400,000. Tivoli recognized a gain of $15,000 on the sale. What was the amount of accumulated depreciation on the asset at the time of its sale? A) $315,000. B) $85,000. C) $385,000. D) $300,000.
Charlie Corporation's adjusted trial balance included the following items (all account balances are normal): Accounts payable Accounts receivable $65,000 $42,000 Capital stock Cash $100,000 $50,000 Dividends $10,000 Goodwill $47,000 Interest expense $4,000 Interest payable $2,000 Inventory $26,000 Notes payable $80,000 Prepaid expenses $5,000 Property, plant & equipment $123,000 Retained earnings $46,000 Rent expense $18,000 Revenues $101,000 Salary expense $60,000 How much are total assets? Tivoli Instrumentation sold a depreciable asset for cash of $100,000. The original cost of the asset was $400,000. Tivoli recognized a gain of $15,000 on the sale. What was the amount of accumulated depreciation on the asset at the time of its sale? A) $315,000. B) $85,000. C) $385,000. D) $300,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Charlie Corporation's adjusted trial balance included the following
items (all account balances are normal):
Accounts payable
Accounts receivable
$65,000
$42,000
Capital stock
Cash
$100,000
$50,000
Dividends
$10,000
Goodwill
$47,000
Interest expense
$4,000
Interest payable
$2,000
Inventory
$26,000
Notes payable
$80,000
Prepaid expenses
$5,000
Property, plant & equipment $123,000
Retained earnings
$46,000
Rent expense
$18,000
Revenues
$101,000
Salary expense
$60,000
How much are total assets?
Tivoli Instrumentation sold a depreciable asset for cash of $100,000.
The original cost of the asset was $400,000. Tivoli recognized a gain
of $15,000 on the sale. What was the amount of accumulated
depreciation on the asset at the time of its sale?
A) $315,000.
B) $85,000.
C) $385,000.
D) $300,000.
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