Chapter 1, Problem 4Q

Saoirse Lounge, a luxury bar, began its operations in 2018. Its fixed assets had a book value of $830,000 in 2019. The lounge did not purchase any fixed assets in 2019. The annual depreciation expense on fixed assets was $70,000, and the accumulated depreciation account had a balance of $190,000 on December 31, 2019. What was the original cost of fixed assets owned by the lounge in 2018 when it started its operations?

Can you solve this general accounting problem using appropriate accounting principles?

Goodwill if any, is recorded at