The Biance sheet data of Corinne Company at the end of 2025 and 2024 follow Cash Accounts receivable (net) Buildings and equipment Accumulated depreciation buildings and equipment Lond Totals Accounts payable Notes payable bank, long term Mortgage payable Common stock, $10 por Retained earnings Totals Select one A 500 OD 552 Oc$(148) Od 500 O $(48) 2025 $50 320 200 00 Clear my choice 180 $714 $180 0 60 418 56 $714 2024 $70 270 150 pe 82 $554 Land worth $100 was acquired in exchange for common stock par $100, during the year all equipment purchased was with cash Equipment costing $10 was sold for $12 book value of the equipment was $8 Cash dividends of $20 were charged to retained earnings and paid during the year, the transfer of net income to retained earnings was the only other entry in the Retained Earnings account in the statement of cash flows for the year ended December 31, 2025, the net cash provided (used) by Investing activities was $146 80 0 318 20 $554
The Biance sheet data of Corinne Company at the end of 2025 and 2024 follow Cash Accounts receivable (net) Buildings and equipment Accumulated depreciation buildings and equipment Lond Totals Accounts payable Notes payable bank, long term Mortgage payable Common stock, $10 por Retained earnings Totals Select one A 500 OD 552 Oc$(148) Od 500 O $(48) 2025 $50 320 200 00 Clear my choice 180 $714 $180 0 60 418 56 $714 2024 $70 270 150 pe 82 $554 Land worth $100 was acquired in exchange for common stock par $100, during the year all equipment purchased was with cash Equipment costing $10 was sold for $12 book value of the equipment was $8 Cash dividends of $20 were charged to retained earnings and paid during the year, the transfer of net income to retained earnings was the only other entry in the Retained Earnings account in the statement of cash flows for the year ended December 31, 2025, the net cash provided (used) by Investing activities was $146 80 0 318 20 $554
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Transcribed Image Text:The balance sheet data of Corinne Company at the end of 2025 and 2024 follow
Cash
Accounts receivable (net)
Buildings and equipment
200
Accumulated depreciation buildings and equipment (36)
180
5714
Land
Totals
Accounts payable
Notes payable bank, long-term
Mortgage payable
Common stock, $10 por
Retained earnings
Totals
Select one
2025
$50
320
WA $(38)
Ob $52
OS(148)
Od $36)
O $(48)
Clear my choice
$180
0
60
418
56
$714
2024
$70
270
150
(16)
82
$554
$146
80
Land worth $100 was acquired in exchange for common stock, par $100, during the year all equipment purchased was with cast Equipment costing $10 was sold for $12 book
value of the equipment was 18. Cash dividends of $20 were charged to retained earnings and paid during the year, the transfer of net income to retained earnings was the only
other entry in the Retained Earnings account
in the statement of cash flows for the year ended December 31, 2025, the net cash provided (used) by Investing activities was
0
318
10
$554
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