Tweedie Company reported the following in the long-term asset section of its balance sheet. They did not
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Question:
Tweedie Company reported the following in the long-term asset section of its balance sheet. They did not purchase or sell any Equipment during the period.
Dec. 31, Year 2
Dec. 31, Year 1
Equipment, net of depreciation of $120,000 and 100,000, respectively
$167,500
$187,500
Patent, net of amortization of $31,500 and $27,000, respectively
88,000
92,500
The company uses the straight-line method to depreciate and amortize all of its operating assets. No new long-term assets were acquired nor sold during the year.
What is the historical cost of the equipment?
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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