What is the original cost of machinery? King Corporation purchased machinery on January 1, 2012.The annual depreciation expense of machinery was $5,000.The book value of machinery at the end of 2013 was $85,000.What is the original cost of machinery?a. $85,000b. $90,000c. $95,000d. $100,000e. $105,000

Step 1: Define DepreciationDepreciation is the non-cash expense charged in the income statement to…

Answered: King Corporation purchased machinery on…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.1E

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King Corporation purchased machinery on January 1, 2012. The annual depreciation expense of machinery was $5,000. The book value of machinery at the end of 2013 was $85,000. What is the original cost of machinery? a. $85,000 b. $90,000 c. $95,000 d. $100,000 e. $105,000