Tri-City Ironworks Co. reported $65,500,000 for equipment and $33,415,000 for accumulated depreciation equipment on its balance sheet.

Question:

Tri-City Ironworks Co. reported $65,500,000 for equipment and $33,415,000 for accumulated depreciation— equipment on its balance sheet. Does this mean

(a) That the replacement cost of the equipment is $65,500,000 and

(b) That $33,415,000 is set aside in a special fund for the replacement of the equipment? Explain.

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Corporate Financial Accounting

ISBN: 9781337398169

15th Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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Question Posted: Jul 28, 2018 12:15 PM

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Tri-City Ironworks Co. reported $65,500,000 for equipment and $33,415,000 for accumulated depreciation equipment on its balance sheet.

Question:

Step by Step Answer:

a No The 65500000 represents the original cost of the equipment Its repla...View the full answer

Corporate Financial Accounting

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