Question: Custer Construction Co. reported $8,300,000 for equipment and $4,950,000 for accumulated depreciation-equipment on its balance sheet. Does this mean (a) That the replacement cost of

Custer Construction Co. reported $8,300,000 for equipment and $4,950,000 for accumulated depreciation-equipment on its balance sheet. Does this mean
(a) That the replacement cost of the equipment is $8,300,000 and
(b) That $4,950,000 is set aside in a special fund for the replacement of the equipment? Explain.

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a No The 8300000 represents the original cost of the equipment Its replac... View full answer

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